Islamic Arab Insurance Company, better known as Salama, one of the UAE’s largest takaful companies, will acquire the insurance portfolio of Dubai Islamic Insurance and Reinsurance Company, known as Aman, as it seeks to boost its market share and competitiveness. Salama, which is listed on the Dubai Financial Market, will acquire Aman's motor, medical, non-motor and group life insurance businesses.
The newly acquired portfolio will operate under the Salama brand name, cementing its position as the UAE’s largest takaful provider, the company said. “Acquiring Aman's portfolio will allow us to add scale and new layers of expertise as we continue to pursue an ambitious strategy for growth,” Salama's vice chairman Saeed Al Hajeri said. “The acquisition of the target portfolio will catapult Salama to surpass the AED 1 billion GWC milestone,” the statement added.
Salama also announced earlier this year that it is to merge with another Dubai-listed Islamic insurer, Takaful Emarat, in October, which is expected to be completed in the second half of 2023. In July, Sharia-compliant insurers Dar Al Takaful and National Takaful Company, known as Watania, completed their merger to create the UAE's largest insurance provider.
Why it matters
The GCC's continued economic recovery from the Covid-19 pandemic, is expected to support Islamic insurers' growth prospects in 2022 and 2023, a report by S&P Global Ratings said in August. Gross written takaful premiums are projected to grow by about 10 % in 2022 and by 5% to 10% in 2023 as improving economic sentiment, continued infrastructure spending, new mandatory cover and overall higher insurance demand in the Gulf boost the industry, S&P said.