UAE – Mergers best solution to save insurers
Friday, 07 08 2016, Category: Insurance and Reinsurance, Country: U.A.E
Mr. Mohammed Mazhar Hamadeh serves as the General Manager of Al Ain Ahlia Insurance Company confirmed the importance of potential mergers between insurance companies operating in the country, clarifying that this issue was already previously tackled in order to establish strong and better companies as well as securing liquidity. However, the management culture of some companies prevent these mergers from taking place.
Mr. Hamadeh said that the recent merger between National Bank of Abu Dhabi and First Gulf Bank is a good example. Therefore, he encourages mergers among insurance companies operating in the country given that many companies suffer from poor performance. As a result mergers and acquisitions are the best solution in order to create large insurance companies that can better compete and which have larger capacity.
Source: Al Khaleej