Abu Dhabi: The public listing of shares of the Abu Dhabi-based Insurance House will happen in May. Its shares upon listing will be open to foreign ownership up to 20 per cent of the company's paid-up equity share capital, a senior company executive said in Abu Dhabi late on Sunday.
"The extent of foreign ownership to be allowed in the company is as per the articles of association. We have to finalise some procedures and official documents before the shares can be listed on the Abu Dhabi Securities Exchange," Mohammad Othman, Insurance House general manager, told Gulf News in an interview.
Insurance House recently completed an initial public offering (IPO) of its shares. The IPO, which closed on March 9, consists of 55 per cent of the company's authorised share capital of Dh120 million.
The founder's share of capital of Dh54 million — or 45 per cent of capital — was subscribed with parent company Finance House taking 36 per cent of the company. The share price for the company was set at Dh1 with a subscription fee of 3.5 fils per share.
"By December this year, our target is to collect Dh9 million in premiums. Though I am quite sure we will be exceeding that amount. We are expecting a break-even in the second year of our operations and in the third we expect the business to become profitable," said Othman. He said Insurance House will provide all insurance products except life insurance.
Their products on offer include marine insurance, motor insurance, medical insurance, engineering insurance, property insurance and liabilities insurance.
Othman said insurance is a profitable business with all companies operating in the sector in the UAE reporting profits on the technical side last year.
"There's competition in the market. But there's room for growth as well as the economy is improving and the population is increasing," he added.
Othman also said creating jobs for the UAE nationals will be a priority for their company.
Dh9m premiums targeted by Insurance House for year
55% authorised share capital offered in recent IPO