UAE: Aman gets regulatory approval to sell life insurance portfolio
Source: Middle East Insurance Review | Jul 2023
Dubai Islamic Insurance & Reinsurance (Aman) has received the regulatory clearance to sell its individual life insurance portfolio to Abu Dhabi National Takaful.
The Central Bank of the UAE stipulates that the deal can proceed provided that Aman’s life policyholders will not be charged any additional fees. They can also exit their policies without paying extra charges said Amansays in a statement lodged with the Dubai Financial Market (DFM).
The deal with the Abu Dhabi entity is likely to be completed by the third quarter of the year. Aman announced in October 2022 that it would sell its life insurance portfolio to Abu Dhabi National Takaful (ADNTC) as part of its plans to transform itself into an investment company.
Aman is also selling a portion of its family takaful, medical and general portfolios to Islamic Arab Insurance Company (Salama).
The accumulated losses of Aman reached AED153.08m ($41.7m) by the end of 1Q2023, representing 68% of the operator’s capital, according to a statement lodged with DFM last month. During 1Q2023, the company generated profit of AED2.27m against net loss of AED7.7m in the same period of the past year. However, net profit for the first quarter of this year plunged to AED3.64m from AED18m in the same period of the preceding year. M