France-based global insurance company AXA and its UAE partner, Kanoo Group, have partnered to purchase a majority shareholding in Green Crescent Insurance Company (GCIC) in the UAE.
Based on the terms of the transaction, both AXA and Kanoo would be the primary investors with a capital increase in GCIC of AED100m ($27m) through a convertible bond instrument. The increase would push GCIC’s capital to AED200m ($54m) on conversion.
The statement issued by the acquirer did not provide details about the size of the stakes that AXA and Kanoo would acquire in GCIC, neither they revaled details of the nature of their partnership.
GCIC chairman Sheikh Saeed bin Hamdan Al Nahyan said that the linkage of GCIC’s extensive local market knowledge and technical experience with AXA’S deep industry expertise and capabilities represent a unique opportunity for GCIC to expand its product offering and market share.
"The proposed deal is expected to provide significant value creation for shareholders, enabling GCIC to further penetrate the UAE health segment while leveraging our life licence to provide further growth in premiums and margins," Al Nahyan added.
AXA Gulf chief executive Jerome Droesch was quoted by The National as saying the deal would allow the company to capture a slice of the UAE’s life insurance sector.
"Currently, we have got a significant market share in the medical and other non-life segments. Customers now require more all inclusive solutions embedding life insurance products," Droesch told the publication.
Established in 2008, Abu Dhabi-based GCIC specializes in health and life insurance.
———————————————————————————————————————————————————————————————–Image: AXA head office in Paris. Photo courtesy of: Tangopaso (talk).