In June 2020, Dar Al Takaful agreed to buy the entire share capital of Noor Takaful General and Noor Takaful Family in an all-cash deal
Dar Al Takaful acquires Noor Takaful. (Credit: Vigan Hajdari from Pixabay)
Dar Al Takaful (DAT), a Dubai-based Islamic insurance company, has wrapped up the previously announced AED215m ($58.54m) acquisition of its rival insurance group Noor Takaful.
As per the legally binding share purchase agreement signed last month with Noor Investment Group and Noor Bank, the company agreed to buy the entire share capital of Noor Takaful General and Noor Takaful Family in an all-cash deal.
Founded in early 2009, the two acquired companies offer a variety of Islamic general and customised insurance products and services to individuals, families, groups, and businesses in the UAE market.
The companies’ products include motor takaful, medical takaful, commercial takaful, travel takaful, and personal takaful, which are said to be backed by the Gulf Cooperation Council’s first e-takaful service that offers instant quotes and online payment facilities.
The two sister companies have now become Dar Al Takaful’s 100% owned subsidiaries. Dar Al Takaful said that following the completion of its acquisition, all the products and previously written by it, will be under the brand of Noor Takaful.
The deal is said to be in line with Dar Al Takaful’s strategy to build scale as well as market share in fragmented market conditions. The company at the time of signing the deal said that due to the complementary nature of its business and that of Noor Takaful companies, synergies are expected to be generated through their combination.
Dar Al Takaful’s financial advisor for the deal was Emirates NBD Capital, while Baker McKenzie Habib Al Mulla was the legal advisor. Deloitte played the role of financial and IT diligence advisor, while Milliman was the actuarial diligence advisor to the company on the transaction.
Brief details of Dar Al Takaful
The Islamic insurance company, which was founded in 2008 with a paid-up capital of AED150m ($40.84m), is said to offer Sharia-compliant solutions for addressing its clients’ insurance requirements.
Following the closing of the deal, the company has announced the appointment of Rajesh Sethi as its new CEO.