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Takaful Emarat's acquisition of Al Hilal Bank's takaful unit creates biggest takaful operator in UAE

Source: Middle East Insurance Review | Jan 2018

Takaful Emarat has acquired Al Hilal Bank’s takaful unit in a deal that will create the biggest takaful entity in the UAE, based on 2016 contribution figures.
 
   In a filing with the Dubai Financial Market, Takaful Emarat said the transaction would be settled in cash, but it did not disclose how much it is paying for the business. It said the deal has received initial approval from the UAE Insurance Authority (IA).
 
   The statement said that the deal would bring together two “highly complementary” businesses as Takaful Emarat’s customers are mostly in Dubai or the Northern Emirates and buy life or health cover, while Al Hilal Takaful has a general takaful licence and its individual and corporate clients are primarily in Abu Dhabi. 
 
   The deal will enable the combined group to offer comprehensive takaful products and services throughout the UAE, giving consumers greater choice and expertise across an expanded distribution network. Between them, the businesses wrote gross written contributions of more than AED900 million (US$245.1 million) in 2016.
 
   Despite the initial approval granted by the IA, Takaful Emarat said that the deal remains “subject to full regulatory approvals”. It is due to be completed in the first quarter of 2018. The transfer of Al Hilal Takaful’s ownership to Takaful Emarat will have no impact on current takaful policies, contracts, claims settlements or the writing of new insurance business.
 
   “This is a transformational deal for Takaful Emarat that will drive growth for the group through a wider range of takaful services and a larger customer base,” said Mr Mohammad Alhawari, Executive Board Member and Managing Director of Takaful Emarat. 
 
   “In parallel, we are making strong progress in developing our digital platform, which will mean a highly efficient and cost-effective service for our customers. Al Hilal Takaful, a well-established and complementary business, is a very good fit for us,” he added.
 
   Mr Alex Coelho, CEO of Al Hilal Bank, said the bank will continue to focus on developing its core business as a progressive Islamic bank. “Takaful Emarat is a specialist takaful provider and is therefore the most appropriate acquirer for our insurance business. We are working closely together to ensure a smooth transition for all our insurance customers.”  M 
 
AED1 = US$0.27
 
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