Takaful Emarat has reduced its share capital by more than AED124.35m ($33.8m) in a restructuring exercise.
The move, undertaken on 21 October 2024, slashed the company’s issued capital to AED25.65m from AED150m previously, according to a statement lodged by the company with the Dubai Financial Market.
Takaful Emarat will next proceed with a capital increase of AED185m via a rights issue.
The Islamic insurer had decided to cancel the shares as part of a restructuring plan to offset accumulated losses. These accumulated losses increased to AED194.1m as of 30 June 2024 from AED181.3m as of 31 December 2023.
The company’s shareholders passed resolutions on 27 February 2024 and 14 June 2024 to reduce its capital and then increase it. These moves followed an unsuccessful attempt by Takaful Emarat to merge with Islamic Arab Insurance (Salama). The merger plan was called off in February 2023.