Takaful Emarat to buy Al Hilal Bank's unit
Takaful Emarat has agreed to acquire Al Hilal Takaful from Al Hilal Bank in an all-cash transaction that will create the largest takaful group in the UAE based on 2016 gross written contributions.
The transaction, which has received initial approval from the UAE's Insurance Authority, brings together two complementary takaful (Islamic insurance) businesses. Takaful Emarat provides life and health takaful insurance for customers, mostly in Dubai and the Northern Emirates. Al Hilal Takaful operates with a general licence, offering a range of cover for individual and corporate customers, primarily in the emirate of Abu Dhabi.
The two companies wrote over Dh900 million in combined gross written contributions in 2016.
Mohammad Al Hawari, executive board member and managing director of Takaful Emarat, said: "This is a transformational deal for Takaful Emarat that will drive growth for the group through a wider range of takaful services and a larger customer base. In parallel, we are making strong progress in developing our digital platform, which will mean a highly efficient and cost-effective service for our customers. Al Hilal Takaful, a well-established and complementary business, is a very good fit for us."
Alex Coelho, CEO of Al Hilal Bank, said: "Takaful Emarat is a specialist takaful provider and is the most appropriate acquirer for our insurance business. We are working closely together to ensure a smooth transition for all our insurance customers."
Takaful Emarat's planned acquisition of Al Hilal Takaful is subject to regulatory approvals and is scheduled to be completed in the first quarter of 2018. The transfer of Al Hilal Takaful's ownership to Takaful Emarat will have no impact on current takaful policies, contracts, claims settlements or the writing of new insurance business.