Insurance House (IH) has received a letter of intent regarding an acquisition offer, the Abu Dhabi-listed company announced in a statement.
The letter of offer was from “an entity representing one of the insurance companies operating in the country and listed on the Dubai Financial Market (DFM)”.
IH said that it would make further disclosures on this matter in due course.
In a report released on 8 December 2025, IH stated that its accumulated losses stood at AED136.5m ($37.2m) as of 30 September 2025, amounting to 114.96% of its share capital.
Explaining the accumulated losses, the insurer said, “The IH Motor Book of Business developed in 2022 and 1H2023 has been identified as a key contributor to the company's losses in the last two years; this was driven by the aggressive market price competition together with unusually high acquisition costs, poor reporting, and claim management practices.
In addition, financial reporting, control issues, and accounting errors related to the period between 2020 and 2022 led to the late realisation of losses and a delayed management response.
A recovery plan approved by the Central Bank of the UAE in Jan 2025 includes raising AED25m via a rights issue, a shareholder guarantee of AED100m, and operational improvements. The company recorded a net profit of AED4.24m for the first nine months of 2025.