Dubai insurers Salama, Takaful Emarat get cracking on merger deal

Dubai insurers Salama, Takaful Emarat get cracking on merger deal

Dubai: The latest merger deal in the UAE insurance sector gets going, with Salama set to acquire Takaful Emarat in an all-share deal. The formal agreement to this effect will be signed before year-end, and will see Takaful Emarat’s operations merged into Salama. The full integration will require a further 6-12 months, which would mean by Q3/Q4 of 2023. The announcement comes as consolidation in the UAE insurance sector gathers momentum. This one follows closely in the footsteps of that between Dar Al Takaful and Watania. “Existing shareholders of Takaful Emarat shall be issued new shares in Salama upon the merger becoming effective,” said a statement. “The merger presents an opportunity to realise business synergies and improve overall performance of Salama (as the surviving entity following the merger) and enhance its capacity to capture a larger market share.” The combined asset base of the merged entity can meet ‘all applicable solvency requirements’. An assessment committee has been formed by the two companies, which has already had one meeting and with more scheduled. The committee has up to 90 days to submit its findings to the director-general of the UAE Central Bank, and which will contain an assessment of the assets,