UAE:Dar Al Takaful to buy Noor Takaful

Islamic insurance company Dar Al Takaful is buying competitor Noor Takaful for AED215m ($58.5m) in cash, as it looks to build scale and market share in fragmented market conditions.

Dar Al Takaful said in a statement that it had entered into a legally binding share purchase agreement with Noor Investment Group and Noor Bank to acquire the entire share capital of both Noor Takaful General and Noor Takaful Family.

The company has received binding financing commitments from UAE banks to finance the deal. The company can confirm that there is no related party involvement in the transaction.

Given the complementary nature of the business of Dar Al Takaful and the Noor Takaful companies, Dar Al Takaful expects to generate synergies from the transaction. The financial benefits of the acquisition are likely to be realised in a timely manner after closing, when the target businesses have fully integrated with Dar Al Takaful.

The deal has been approved by the shareholders of Dar Al Takaful, the Securities and Commodities Authority and the Insurance Authority and is expected to close in the second quarter of 2020, subject to other customary closing conditions.

The UAE insurance market remains fragmented, with 62 traditional and Islamic operators – 30 of which are listed on local markets.

Source: Middle East Insurance Review