UAE insurers announce merger

Two UAE-based insurers, Takaful Emarat Insurance and Islamic Arab Insurance (Salama), have announced a merger through a non-cash deal.

“Takaful Emarat is taking all necessary actions required by regulators, including presenting the mentioned development projects to shareholders for their approval, in co-ordination with UAE Central Bank and Securities and Commodities Authority,” a statement by the insurers said.

The approved transaction is likely to consist of Salama issuing additional shares for Takaful Emarat’s shareholders, Gulf News reported.

According to the report, the deal reflects a rapid trend of consolidation in the UAE’s insurance industry over the past few months, involving both insurers and third-party administrators. Recent examples include the merger between Dar Al Takaful and Watania, which was also done by issuing new shares. Dar Al Takaful added to its capital through new shares issued to Watania.

In April, Omani financial group OMINVEST acquired RSA Middle East. And, in the latter half of 2021, year, Gulf Insurance Group completed its takeover of global player AXA’s businesses in the Gulf region.