Following the completion of their merger, the sharia-compliant insurers Dar Al Takaful and National Takaful Company, better known as Watania, have launched their newly merged company, Dar Al Takaful, into trading.
Dar Al Takaful and Watania's combined firm currently has a total share capital of AED 260m. As part of the deal, Watania delisted its shares from the Abu Dhabi Securities Exchange on June 30 and its owners received 0.734375 Dar Al Takaful shares for each Watania share.
The Islamic insurance companies stated their intention to merge in March this year in an effort to grow and cement their positions in the UAE market. But it wasn’t the first time the companies crossed paths. In 2020, Watania acquired a 4.9% share in Dar Al Takaful for roughly $1.6m.
Why it matters
The insurance industry in the UAE is anticipated to expand between 2021 and 2026 at a compound annual rate of 4.1%. The group says its combined strength puts it in a great position to increase product offerings and provide policyholders with competitive terms. Additionally, it will aim to enhance customer service as a result of its capacity and greater desire to invest in novel concepts and technology.
