Intensive negotiations began between 3 Emirati insurance companies listed on the financial markets to discuss merging with them, in an effort to form a giant insurance institution, the largest in the UAE.
According to the Emirati newspaper, Al-Bayan, a large round of negotiations has been completed between the Islamic Arab Insurance Company, Salama, the Emirates Takaful Company, and the Dubai Islamic Insurance and Reinsurance Company, Aman.
The negotiations are supported and encouraged by the concerned government agencies, given the importance of the insurance sector in supporting the economic development process in the country, and the need for large national insurance institutions capable of meeting major insurance needs, in light of the rapid growth of the local economy.
The sources confirmed that the negotiations have come a long way, with the three companies initiating due diligence procedures, which include comprehensive audits of the conditions of each of the companies, to ensure the accuracy of assessing their conditions before proceeding to complete the final merger agreement.
For his part, an expert in financial markets, Muhammad Ali Yassin, said that the insurance sector in the UAE markets, although the number of its companies is large, its impact on the market value is very weak, and most of it is small companies operating on the principle of quotas.
Muhammad Ali Yassin added, in an interview with Al-Arabiya, that companies have certain quotas that do not exceed them, as there is no open competition on the price, with controls in place to protect the sector.
He pointed out that the regulator of the sector has been working for 4 years to encourage companies to merge, pointing out that those companies to be merged will not constitute the largest company in the Emirates, because they are small companies, and their aim of the merger is to correct internal conditions.
The Islamic Arab Insurance Company Salama had announced that it had received initial approval from the regulatory authorities to merge with the Takaful Emirates Company.
Salama announced that it has entered into negotiations with Dubai Islamic Insurance and Reinsurance Company, Aman, to acquire a share of its insurance portfolio in the areas of general and health insurance and alternative family life insurance. The deal is subject to the necessary scrutiny, negotiations between the two parties, and regulatory approvals.
