UAE’s takaful operators Dar Al Takaful (DAT) and National Takaful (Watania) announced that their merger is expected to take place in June, the companies said in a filing to the Dubai Financial Market last April.
The announcement revealed that following the merger, Watania will be dissolved pursuant to the provision of Article 293 of the Companies Law. “Upon the merger becoming effective, the assets and liabilities of Watania will be assumed by DAT on the effective date in consideration for the issue of new DAT shares to Watania shareholders,” said the statement. It also added that the new entity is “well positioned to provide support for the UAE’s economic vision and to play a key role in the country’s growth, diversification and development of the local takaful market.”
The merger is also projected to boost the financial and operational resilience of the combined group, which is expected to benefit from an increase in scale, improvement in portfolio mix and balance sheet, according to the statement.
The combined portfolio will have a mix of medical, motor and family takaful, and a more balanced business mix between Dubai and Abu Dhabi. “A larger portfolio will allow the combined group to enhance its technical analysis capability and expand product portfolio and mitigate risks,” said the statement. M