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The acquisition will help Salama surpass the milestone of Dh1 billion gross written contributions. Image Credit: Shutterstock

Dubai: Islamic Arab Insurance Company, listed as ‘Salama’ on the DFM, announced on Thursday that it will acquire the insurance portfolio of Dubai Islamic Insurance and Reinsurance Company PSC (Aman), which includes its motor, medical, non-motor and group life insurance business. The transaction is subject to customary regulatory approval and expected to conclude in Q1 2023.

The target portfolio generated Dh198.59 million gross written contribution (GWC) for the first nine months of 2022 and generated Dh5.46 million of net Takaful income, according to published financial statements.

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The target portfolio is expected to enhance Salama’s existing portfolio and generate significant long-term synergies. The acquisition will also help Salama surpass the Dh1 billion GWC milestone.

Saeed Mubarak Al-Hajeri, Vice Chairman of Salama, said: “Building on Salama’s heritage as a trusted Islamic insurance provider, we are pleased to announce the acquisition of Aman’s non-life portfolio, bringing together the strength and resources of two prominent names in the insurance sector. 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. As a leader in the UAE Takaful industry for over 43 years, we see tremendous opportunity for Sharia’h compliant insurance solutions (Takaful) and remain committed to delivering substantially more for our customers and shareholders”.

The acquisition of the non-life portfolio will be executed under the terms of the agreement, as approved by the respective boards.