UAE-based National Bank of Ras Al Khaimah (RAKBank) is reportedly engaged in negotiations to purchase a majority stake in RAK National Insurance in the country.
The proposed acquisition is part of the bank’s strategy to diversify its revenues channels. The announcement comes at a time, when the UAE insurance industry is passing through a consolidation phase.
The bank is also talking about the details of the deal with the regulators, including the Securities and Commodities Authority and the Abu Dhabi Securities Exchange.
The government of Ras Al Khaimah owns approximately 50% in both RAKBank and Ras Al Khaimah National Insurance.
A statement by the bank was quoted by the thenational.ae as saying: "The bank, on a suitable time, will further disclose the impact of the acquisition on the bank’s financial statement."
Reports emerged that RAKBANK, which also delivers insurance services, may integrate the operations following completion of the takeover of the UAE’s oldest insurance companies.
Many insurers have collaborated with banks for bancassurance to offer customers an array of life and non-life insurance products and services to tap the opportunities of the underdeveloped UAE insurance market.
Image: UAE’s RAKBANK plans to purchase majority stake in RAK National Insurance. Photo: courtesy ofadamr /freedigitalphotos.net.