Takaful Emarat-Insurance (P.S.C) Company Profile

Background

Established in 2008, Takaful Emarat-Insurance (P.S.C) is a leading Shariah-compliant insurance provider based in Dubai, United Arab Emirates. The company specializes in offering a comprehensive range of life and health insurance products tailored for both individual and corporate clients. Operating under Islamic finance principles, Takaful Emarat ensures that all its products and services adhere to Shariah laws and ethics, emphasizing risk-sharing and the prohibition of interest (riba).

Key Strategic Focus

Takaful Emarat's strategic focus centers on delivering innovative and customer-centric insurance solutions that align with Shariah principles. The company offers a diverse portfolio, including health insurance, life insurance, savings and investment plans, and credit and saving insurance. By leveraging multiple distribution channels—such as direct sales, brokers, and bancassurance partnerships—Takaful Emarat effectively reaches a broad customer base across the UAE.

Financials and Funding

As of December 31, 2023, Takaful Emarat reported an annual revenue of $63.20 million, reflecting a 1.4% growth from the previous year. However, the company faced accumulated losses amounting to AED 194.1 million, equating to 129% of its paid-up capital. To address these financial challenges, Takaful Emarat initiated a capital restructuring process, including a capital increase of AED 185 million approved by the General Assembly. This strategic move aims to offset accumulated losses and strengthen the company's financial position.

Leadership Team

The leadership team at Takaful Emarat comprises experienced professionals dedicated to steering the company towards growth and stability. Notable members include:

Chairman: Nooraldeen S. A. Atatreh

Board Members:

Abdlaziz Abdullatef

Majed A. M. Al-Hameli

Nayef Q. Abdullah

Senior Finance Manager: Adnan Sabaalaish

Chief Operating Officer: Lalitha Prasad

Chief Investment Officer: Ahmed Aboutaleb

In August 2023, CEO Wael Al Sharif resigned from his position. The company appointed an Acting CEO to ensure continuity and stability during the transition period.

Competitor Profile

Market Insights and Dynamics

The UAE's insurance market is characterized by robust growth, driven by increasing demand for Shariah-compliant insurance products. The Takaful segment, in particular, has witnessed significant expansion, with companies striving to capture a larger market share through innovative offerings and strategic partnerships.

Competitor Analysis

Takaful Emarat faces competition from several key players in the insurance industry, including:

HDFC Life: A prominent life insurance company offering a wide range of individual and group insurance solutions.

Humana: A leading health insurance provider known for its comprehensive health plans and services.

Vienna Insurance Group: Engaged in property, casualty, and life insurance businesses across Central and Eastern Europe.

China Pacific Insurance: A major property insurance company with a diverse portfolio of insurance products.

These competitors have established strong market positions through diverse product offerings and extensive distribution networks.

Strategic Collaborations and Partnerships

Takaful Emarat has engaged in strategic collaborations to enhance its market position and service offerings. Notably, in December 2017, the company agreed to acquire Al Hilal Takaful from Al Hilal Bank in an all-cash transaction. This acquisition aimed to create the largest Takaful group in the UAE based on 2016 gross written contributions. Additionally, Takaful Emarat partnered with Bayzat, a UAE-based technology company, to provide innovative insurance and HR solutions, thereby enhancing customer engagement and operational efficiency.

Operational Insights

In response to financial challenges, Takaful Emarat has implemented several strategic initiatives, including capital restructuring and technological enhancements. The company focuses on strengthening its IT systems and investment strategies to improve operational efficiency and financial performance. These efforts are designed to position Takaful Emarat competitively within the UAE's dynamic insurance market.

Strategic Opportunities and Future Directions

Looking ahead, Takaful Emarat aims to leverage its Shariah-compliant offerings to capture a larger share of the growing Takaful market in the UAE. The company plans to expand its product portfolio, enhance digital capabilities, and forge strategic partnerships to drive growth and profitability. By focusing on customer-centric solutions and operational excellence, Takaful Emarat is poised to strengthen its market position and achieve long-term success.