The Central Bank of the UAE (CBUAE) has revoked the licence of Al Khazna Insurance Company (AKIC).
In a statement, the central bank says that the move is due to Al Khazna's failure to meet the licensing requirements necessary to conduct insurance business during the period of suspension of its licence.
The revocation results from the findings of examinations and follow-ups conducted by the CBUAE, which revealed that AKIC failed to comply with requirements set out in the Insurance Law and other regulatory requirements imposed by the CBUAE, during the period of suspension of its license.
The CBUAE, through its supervisory and regulatory mandates, works to safeguard the transparency and integrity of the insurance sector and the UAE financial system.
Established in December 1996, Abu Dhabi-based AKIC started operations in March 1997. According to the company’s latest available financial information, unaudited preliminary financial results for 2023, its shareholders’ equity as of 31 December 2023 stood at AED19.2m ($5.2m). This was 19% of the company’s paid-up capital of AED100m. In 2020, shareholders approved a 76% capital reduction from AED420m to AED100m, to write off accumulated losses that amounted to AED411m as at 31 December 2019.
Trading in the company shares on the Abu Dhabi Securities Exchange stopped several years ago.