UAE: SALAMA to acquire AMAN insurance portfolio
Source: Middle East Insurance Review | Feb 2023
Islamic Arab Insurance Company (SALAMA) announced last month that it will acquire the insurance portfolio of Dubai Islamic Insurance and Reinsurance Company (AMAN) which includes its motor, medical, non-motor and group life insurance business (target portfolio). The transaction is subject to customary regulatory approval and expected to conclude in 1Q2023, a statement by the company said.
The target portfolio generated AED198.59m ($54m) gross written contributions (GWC) for the first nine months of 2022 and generated AED5.46m of net takaful income before the administrative overheads as per published financial statements. The target portfolio is expected to enhance SALAMA’s existing portfolio and generate significant long-term synergies. The acquisition of the target portfolio will catapult SALAMA to the surpass the AED1bn GWC milestone. The acquisition will enhance SALAMA’s range of solutions and overall competitiveness in terms of GWC and market share, in addition to delivering long-term, sustainable benefits to shareholders and customers.
The acquisition of the non-life portfolio will be executed under the terms of the agreement, as approved by the respective boards. Both companies have been key pillars for the takaful industry in the UAE for over four decades and carry a legacy of extensive experience and customer trust. The combined insurance portfolios will operate under the SALAMA brand name, bringing together the competitive leverage and strengths of two complementary insurance portfolios, further reinforcing SALAMA’s position as the biggest takaful provider in the UAE, said the statement. M