Islamic Arab Ins. Company to raise foreign ownership limit to 49%
Monday, 10 14 2019, Category: Islamic Insurance, Country: U.A.E
Islamic Arab Insurance Company (Salama), one of the UAE’s largest takaful companies, plans to raise the foreign ownership limit of its shares to the maximum permissible under UAE law of 49 per cent, the company said.
The Islamic insurer is also reducing paid up capital of Dh1.21 billion to write off accumulated losses of Dh394 million to allow it to start paying dividends again, according to a statement posted on Sunday on the Dubai Financial Market, where its shares trade.
“The paid-up capital of the company as well as the number of issued shares will be reduced approximately by one third, which should reflect positively on the financial structure of the company and put it on track towards starting dividend distribution,” Salama said of the decisions made at a recent board of directors meeting.
“Eeven after reduction of capital ... the company will continue to have a high and healthy solvency capital that exceeds the regulatory requirements."
The company also plans to cancel about 21.6 million treasury shares bought 10 years ago to enhance the efficiency of its capital structure.
“These measures will enable the company to improve its credit rating, which was recently upgraded by S&P to 'BBB'. The board is committed to continue to steer the company towards greater success and efficiency, that reflects positively on the company's customers and shareholders,” it said.
Source: The National - UAE