11 May 2006
Abu Dhabi: Abu Dhabi-listed Al Khazna Insurance is making its overseas debut through a joint venture in Saudi Arabia and plans to launch a life assurance business, a senior company official said."Al Khazna plans to take a 25 per cent equity with other Saudi partners in a new insurance company. This is our first venture overseas," a senior official of Al Khazna told Gulf News.
He said the insurance sector in Saudi Arabia is now well regulated and the market offers attractive prospects.
Meanwhile, according to the company's annual report, Al Khazna is presently conducting a feasibility study to establish an independent Life Assurance business in cooperation with Germany's Aspecta, owned by Talanx with estimated premium income of 20 billion euros.
"The CEO of Aspecta visited the UAE and an understanding in principle was reached to mutually develop life assurance business in the UAE. The Aspecta management has visited Al Khazna several times to continue the market study and the company is preparing the necessary study for this business," the report said.
Al Khazna earned a net profit of Dh25 million for full year 2005, down 31 per cent compared to the previous year. The lower income was due the increase in international interest rates that impacted the return on certificates of deposits portfolio that was linked to interest rate movements.
By Stanley Carvalho
Gulf News 2006. All rights reserved.
