Abu Dhabi headquartered National Takaful Company (Watania) has acquired a 4.9% stake in Dar Al Takaful, the company says in a statement lodged with the Abu Dhabi bourse.
Dar Al Takaful is an Islamic insurance company listed on the Dubai Financial Market (DFM).
The 4.9% stake is worth AED5.88m ($1.6m).
Watania adds that the acquisition is expected to generate investment income by way of capital appreciation and dividends in the future.
The company recently announced the distribution of 6% cash dividends amounting to AED9m to shareholders for 2019 after handing out 5% cash dividends for 2018. Watania earned net profit of AED13.1m for 2019 and AED12.3m for 2018.
In May, AM Best affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of "bb+" of Watania. The outlook of these ratings is positive.