UAE: Dar Al Takaful waiting for opportune time for rights issue
Source: Middle East Insurance Review | Jul 2015
Dar Al Takaful is waiting for an improvement in market conditions before it effects a rights issue to raise its capital by AED50 million (US$13.6 million) to AED150 million, said Managing Director Mr Saleh AlHashimi. The capital increase would be the company’s first since it was established in 2008.
The Dubai-based company has already received the approval of the Securities and Commodities Authority (SCA) for its prospectus. In May 2014, shareholders approved a 50% capital increase from AED100 million to AED150 million through a rights issue, at two shares for every share.
In an interview with Mubasher, Mr AlHashimi said that the company will be more cautious this year, which is expected to be tough due to the fluctuations seen in 2014, particularly in the stock markets, which in turn will be reflected in the company’s growth.
According to unaudited results, Dar Al Takaful posted net profits of AED225,939 (US$61,496) in the first quarter of this year, down from the AED2.06 million raked in for the corresponding period in 2014. The firm had reported a leap in its an annual profits by 443% to AED4.56 million in 2014, from AED840,700 in 2013.
Mr AlHashimi added that Dar Al Takaful is studying investment opportunities in neighbouring markets, particularly Saudi Arabia, with the Saudi bourse now open to foreign investors. The takaful operator has no new geographic expansions planned for this year, he said.
Dar Al Takaful is also looking to increase its operations in the health insurance sector. It recently became one of nine insurers approved by the Dubai Health Authority to provide medical coverage to those earning below AED4,000
AED1 = US$0.27