Dubai Islamic Insurance and Reinsurance Co (Aman) has said that it "will be taking the necessary steps to protect its interests", after Abu Dhabi National Takaful Company (ADNTC) stated that it had terminated an agreement to acquire Aman's life insurance portfolio.
In a statement lodged with Dubai Financial Market, Aman said that the “agreement transferring the portfolio has not been validly terminated in accordance with its terms and conditions”.
Aman pointed out that on 20 July 2023, the Central Bank of the UAE approved the transfer of the individual life insurance portfolio to ADNTC. Aman added that it had expected all transfer procedures to have been completed during 2023. It said, “However, since that date, Abu Dhabi National Takaful Company has failed to conclude the transaction despite all requirements from the official authorities being met.” The sale would have been for AED37.5m ($10.2m).
What ADNTC said
On ADNTC’s part, the insurer said in a statement filed with the Abu Dhabi Securities Exchange on 3 September 2024, that the initial agreement, signed on 27 October 2022, was subject to certain requirements before the acquisition of the portfolio would be completed.
ADNTC continued, “Pending the satisfaction of these requirements the ongoing responsibility for the management of the portfolio and its liabilities remained solely the responsibility of AMAN. As the requirements for the acquisition of the portfolio have not been met, the board of directors has decided not to proceed further with the acquisition. The company has therefore notified AMAN of its decision to terminate the agreement in accordance with its terms and conditions.”
AMAN’s plan is to exit the insurance business and transform itself into an investment company. On 29 December 2022, Islamic Arab Insurance Company (Salama) announced that it would acquire the non-life insurance portfolio of Aman. Including the latter’s motor, medical, non-motor, and group life insurance business. The purchase consideration is AED15m. The targeted execution date of the transaction is during the year ending 31 December 2024.