Arig negotiating buyout of Takaful ReJuly 24 2015 by InsuranceAsia News Staff
Bahrain-headquartered Arab Insurance Group (Arig) plans to take over full control of Takaful Re, a loss-making provider of Islamic reinsurance products and services to Islamic insurance firms, for a still undisclosed amount.
The Dubai Financial Market-listed Arig announced that it was in negotiations with the holders of the 46% of Takaful Re shares that it does not own, although it provided no details about the state of the negotiations and the price it is offering for the shares.
Other major shareholders of Takaful Re include Emirates Funds, Islamic Development Bank, Dubai Investments, and Dubai Islamic Bank.
The buyout plan was announced at a time when many Islamic insurance firms are competing for market share.
According to an earlier report released by credit ratings agency Standard & Poor’s, the Islamic insurance industry posted a net underwriting loss last year.
Takaful Re reported losses of US$9.1 million last year, up from US$8.1 million in 2013.
- January 18
The majority purchase of the former ING Life Korea business will give the group its second life insurer.
- January 17
The Australian firm is mulling another retreat from an Asian market.
- January 16
Aberdeen Standard Investments is the latest investor in the digital player with a S$17.6m equity stake.
- January 15
The sales are part of a government plan to sell 25% stakes in the insurance giants by the end of 2020.