UAE: Insurance sector has exposure to hard-hit Abraaj Group
Source: Middle East Insurance Review | Sep 2018
Several listed companies, including insurers, have a big exposure to the struggling Abraaj Group, the private equity company undergoing a court-supervised restructuring amid allegations of mismanagement of investors’ funds. The firm has denied the allegations against it.
In a filing to Abu Dhabi Securities Exchange, Al Buhaira National Insurance disclosed an exposure of AED8.4m ($2.3m), while Emirates Insurance revealed exposure of $2.45m, reported Khaleej Times.
In all, UAE businesses and listed companies have an exposure of up to $1bn to Abraaj. The slew of disclosures, particularly from banks, was made after the market regulator, the Securities and Commodities Authority, in June instructed UAE-listed companies to declare their exposure to Abraaj.
The group was once the Middle East’s biggest buyout company, managing more than $13.6bn of assets at its peak. It came under fire this year with allegations of misusing investors’ funds in a $1bn healthcare investment vehicle. Through its restructuring, Abraaj reached a provisional agreement in June to sell part of its funds management business. M
AED1 = $0.27