Dubai-based Islamic insurer Salama said its acquisition of part of fellow takaful company AMAN will take its gross written contributions (GWCs) to AED 1 billion ($272 million). 

The two companies listed on the Dubai Financial Market (DFM) confirmed that the transaction is expected to go ahead, subject to regulatory approvals in the first quarter of 2023, following an announcement in October. 

Salama confirmed on Thursday that its board had approved the acquisition Wednesday night, adding that it will acquire AMAN’s non-life insurance portfolio, including its motor, medical, non-motor and group life insurance business.  

The newly acquired portfolio will operate under the Salama brand name, cementing its position as the UAE’s largest takaful provider, the company said. 

“The Target Portfolio generated AED 198.59 million Gross Written Contribution (GWC) for the first nine months of 2022 and generated AED 5.46 million of net takaful income before the administrative overheads as per published financial statements,” Salama said. 

“The acquisition of the target portfolio will catapult Salama to surpass the AED 1 billion GWC milestone,” the statement said. 

“Both companies have been key pillars for the takaful industry in United Arab Emirates (UAE) for over four decades and carry a legacy of extensive experience and customer trust,” it continued. 

Salama vice chairman Saeed Mubarak Al-Hajeri also said that the acquisition will allow their company to “add scale and new layers of expertise” as they continue to pursue an ambitious growth strategy. 

“As a leader in the UAE takaful industry for over 43 years, we see tremendous opportunity for shariah-compliant insurance solutions.” 

Salama also announced earlier this year that it is to merge with another Dubai-listed Islamic insurer, Takaful Emarat, in October, which is expected to be completed in the second half of 2023. 

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)