Informed sources revealed the start of 3 UAE insurance companies Intensive negotiations to merge with each other, to form a giant insurance institution, likely to be the largest in the UAE.
The sources told the Emirati newspaper, “Al-Bayan”, that the companies are listed in the financial market, and the negotiations enjoy the support and encouragement of the concerned government agencies, given the importance of the insurance sector in supporting the economic development process in the country, and the need for the presence of huge national insurance institutions capable of meeting major insurance needs, in Under the rapid growth of the local economy.
The sources confirmed that the negotiations have come a long way, with the three companies initiating due diligence procedures, which include comprehensive audits of the conditions of each of the companies, to ensure the accuracy of assessing their conditions before proceeding to complete the final merger agreement.
For his part, an expert in financial markets, Muhammad Ali Yassin, said that the insurance sector in the UAE markets, although the number of its companies is large, its impact on the market value is very weak, and most of it is small companies operating on the principle of quotas.
Muhammad Ali Yassin added, in an interview with Al-Arabiya, that companies have certain quotas that do not exceed them, as there is no open competition on the price, with controls in place to protect the sector.
He pointed out that the regulator of the sector has been working for 4 years to encourage companies to merge, pointing out that those companies to be merged will not constitute the largest company in the Emirates, because they are small companies, and their aim of the merger is to correct internal conditions.
The Islamic Arab Insurance Company “Salamah”, listed on the Dubai Financial Market, had announced that it had received initial approval from the regulatory authorities to merge with the Emirates Takaful Company.
“Salama” company announced that it entered into negotiations with the Dubai Islamic Insurance and Reinsurance Company “Aman” to acquire a share of its insurance portfolio in the areas of general and health insurance and family takaful, “the takaful alternative to life insurance.” The deal is subject to the necessary scrutiny, negotiations between the two parties, and regulatory approvals. .