The newly established Orient UNB Takaful Company plans to start operations next July, Mr Omer Elamin, President of Orient Insurance Group, told Middle East Insurance Review (MEIR) in a recent interview. He expects the new company to generate contributions of AED300 million (US$81.7 million) in the first year.
“The takaful operation will focus on three main areas: serving the Group’s business which relates to Islamic finance; supporting the bank’s insurance operations; and benefiting from the bank’s database to generate more income,” he said.
Orient Insurance teamed up with Union National Bank (UNB) of the UAE to set up Orient UNB Takaful, a general takaful operation, together holding 70% of the setup. The remaining 30% have been offered to the public through an initial public offering.
The new venture’s IPO, concluded last January, was subscribed more than 13 times. This was the first IPO for an insurer in the UAE in more than five years, and the notable response to the IPO reflects the strength of the partners from both the banking and insurance sectors.
Orient UNB Takaful has a paid-up capital of AED200 million, twice the minimum capital requirement of AED100 million. “We opted to start with strong capitalisation, aiming to provide added value to the sector and sustain a sturdy market position,” he said.
The full interview is carried in the March 2017 edition of Middle East Insurance Review. Get your copy today!