Dubai: The DFM-listed Aman Insurance has received the regular clearance to sell its individual life insurance portfolio to the Abu Dhabi National Takaful Co.
The Central Bank of the UAE – which also oversees the insurance sector – gave its go-ahead for the deal to happen as Aman Insurance switches over to be more of an investment company. The deal with the Abu Dhabi entity is likely to be done by the third quarter. Aman expects the deal - value of which has not been given - to reflect positively on its financials soon.
The deal with Abu Dhabi Takaful Co. can proceed provided that Aman’s life policyholders will not be charged any additional fees. They also can exit the policy without paying anything extra.
Aman will notify policyholder and beneficiaries ‘to submit any objection on the transfer transaction to the Central Bank of the UAE within a period of 45 days’ from the announcement date.
UAE insurance sector continues its consolidation path, with Dubai-based Sukoon (formerly Oman Insurance) acquiring a majority in ASCANA recently.
Local insurers had called in healthy financials for 2022, helped by higher premiums on some of the key lines such as automotive, health, etc. But at the same time, they had also sounded out the need to stick to core underwriting fundamentals to not be exposed to future volatility.