Islamic Arab Insurance, one of the UAE's largest takaful companies, plans to raise the ceiling on foreign ownership in the company to the maximum permissible under UAE law of 49%, the company says. The existing cap is 25%.
The Islamic insurer is also reducing its paid up capital of AED1.21bn ($329m) to write off accumulated losses of AED394m to allow it to start paying dividends again, according to a statement lodged with the Dubai Financial Market, where its shares trade.
“The paid-up capital of the company as well as the number of issued shares will be reduced approximately by one third, which should reflect positively on the financial structure of the company and put it on track towards starting dividend distribution,” Salama said of the decisions made at a recent board meeting.
The company also plans to cancel about 21.6 million treasury shares bought 10 years ago to enhance the efficiency of its capital structure.
“These measures will enable the company to improve its credit rating, which was recently upgraded by S&P to 'BBB'. The board is committed to continuing to steer the company towards greater success and efficiency, that reflects positively on the company's customers and shareholders,” the statement said.
The resolutions are subject to approval by regulators, after which they will be voted on at a shareholders' meeting.