-       Creates largest Islamic insurance group in the UAE, with proforma 2016 gross written contributions of over AED 900 million

-       Highly complementary businesses bringing together UAE-wide customer base

Dubai, UAE:Takaful Emarat has agreed to acquire Al Hilal Takaful from Al Hilal Bank in an all cash transaction that will create the largest takaful group in the United Arab Emirates (UAE) based on 2016 gross written contributions.

The transaction, which has received initial approval from the UAE’s Insurance Authority, brings together two highly complementary takaful (Islamic insurance) businesses. Takaful Emarat provides life and health takaful insurance for customers, mostly in Dubai and the Northern Emirates. Al Hilal Takaful operates with a general license, offering a wide range of cover for individual and corporate customers, primarily in the emirate of Abu Dhabi.

The deal enables the combined group to offer comprehensive takaful products and services throughout the UAE giving consumers greater choice and expertise across an expanded distribution network. The two companies wrote over AED 900 million in combined gross written contributions in 2016.

Mohammad Al Hawari, Executive Board Member and Managing Director of Takaful Emarat, said, “This is a transformational deal for Takaful Emarat that will drive growth for the group through a wider range of takaful services and a larger customer base. In parallel, we are making strong progress in developing our digital platform, which will mean a highly efficient and cost effective service for our customers. Al Hilal Takaful, a well-established and complementary business, is a very good fit for us.”

Alex Coelho, Chief Executive Officer of Al Hilal Bank, said, “Al Hilal Bank will continue to focus on developing its core business as a progressive Islamic bank.  Takaful Emarat is a specialist takaful provider and is therefore the most appropriate acquirer for our insurance business.  We are working closely together to ensure a smooth transition for all our insurance customers.”

Takaful Emarat’s planned acquisition of Al Hilal Takaful is subject to full regulatory approvals and is scheduled to be completed in the first quarter of 2018. The transfer of Al Hilal Takaful’s ownership to Takaful Emarat will have no impact on current takaful policies, contracts, claims settlements or the writing of new insurance business. Al Hilal Bank was advised by KPMG Deal Advisory and Allen & Overy. Takaful Emarat was advised by Milliman and Herbert Smith Freehills.

-Ends-

© Press Release 2017