AXA Liabilities Managers (AXA LM) has agreed to acquire a majority stake in Emirates Re, a UAE-based independent international Islamic reinsurer.
It is the 19th acquisition for AXA in the external market and the first with a UAE-based company.
Financial details related to the acquisition were not disclosed.
Emirates Re handles Retakaful business, operates from the Dubai International Financial Center (DIFC). Its gross reserves of $69m mainly come from the Middle East & North African, Asian and Indian-based property, motor, accident, energy and marine risks.
The acquisition, which is subject to the approval from Dubai Financial Services Authority (DFS A), will be completed by an investment vehicle of AXA Liabilities Managers.
Established in 2001, AXA LM manages non-life reinsurance liabilities from its parent company.
AXA Liabilities Managers CEO Sylvain Villeroy de Galhau said: “We are delighted to pursue our external development with the acquisition of Emirates Re. This transaction, which demonstrates our great responsiveness and ability to adapt to new markets and diverse types of business, further fuels our ambition as a run-off acquirer and our appetite for new deals.”
AXA LM stated that it is now focused on accelerating finality for liabilities under management and in acquiring non-AXA portfolios. It also confirms its position as a partner of choice on the international run off acquisition scene.
Emirates Re board chairman Jonathan Cimino said: “We are very pleased to have found an agreement with AXA Liabilities Managers that provides us with a favorable outcome for all stakeholders involved.
“By working with a professional run off acquirer such as AXA LM, we have been able to fulfill our dual objectives of achieving a structured exit for our shareholders whilst ensuring continuity for our cedants.”
The company recently acquired Gothaer Finanzholding, a Cologne, Germany-based insurance company. The transaction was completed after receiving regulatory approval from BaFin in June, this year. Gothaer Finanzholding’s outstanding reserves total nearly €19m and essentially include European Motor and General Liability Reinsurance.