UAE – 3 reasons discourage consolidation of insurers
Saturday, 06 18 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance sector experts defined three main reasons that prevent mergers and acquisitions in the sector such as willingness of boards to retain power and maintain their financial reputation. Mergers and acquisitions in many cases are against the interests of executive directors of companies. Moreover, such mergers and acquisitions can be unattractive in light of the difficulties of the insurance sector for some distressed companies that are looking for the support of other companies.
Managing Director at CIBL Cogent Insurance Brokers Dr. Hazem Al Madi said that merger and acquisition operations are successful when they are supported by well-studied plans and strategies.
He added that there are many types of mergers: mergers in order to improve performance by looking for a complementary partner and mergers in order to get rid of expenses and control them adequately.
Source: Al Roeya - UAE