Dubai insurer Aman to take 'necessary steps' after deal to sell life portfolio is called off
Dubai insurer's plans to sell life portfolio in limbo after Abu Dhabi firm pulls out
Dubai: The Dubai insurer Aman says the last word has not been said about a called off deal to sell its life insurance portfolio to Abu Dhabi National Takaful Company.
In a statement, Aman said the ‘agreement transferring the portfolio has not been validity terminated’ in line with the terms and conditions. And that ‘Aman will be taking the necessary steps to protect all its interests’.
There was a lot riding on the deal for Aman. The Dubai company wants to exit all of its insurance operations and recast itself as an investment firm. Selling the life insurance business was thus a key part of that transformation.
It was earlier this week that Abu Dhabi National Takaful Co. said it will not pursue the deal.
“As the requirements for the acquisition of the portfolio have not been met, the Board of Directors have decided not to proceed further with the acquisition,” says a statement from the Abu Dhabi insurer. “The company has therefore notified Aman of its decision to terminate the agreement in accordance with its terms and conditions.
It’s in counter to this that DFM-listed Aman has come up with the update.
“On 20-7-2023, the Central Bank of the UAE issued a decision granting final approval for the transfer of the individual life insurance portfolio” to the Abu Dhabi firm.
“It was expected that all transfer procedures would be completed during 2023,” Aman added. “Since that date, Abu Dhabi National Takaful company has failed to conclude the transaction despite all requirements from the official authorities being met.”
Aman has not spelt out any process it wants to pursue to make sure the deal gets ‘validity terminated’. Or whether it will now go to market to find a new buyer for the life portfolio.