Dubai Investments increased its stake in National General Insurance Company (NGI) to 29.99 per cent as it aims to expand within the UAE’s insurance sector.
The company bought 21.53 per cent of NGI shares from Emirates NBD, it said in a statement on Wednesday.
“The deal is part of Dubai Investments' focus on strategic business investments reinforcing the company’s foray into newer business sectors,” Khalid Bin Kalban, vice chairman and chief executive of Dubai Investments, said.
“The UAE’s insurance sector benefits from a stable business landscape and a sound regulatory framework, making it highly conducive for operations.”
Al Mal Capital, a subsidiary of Dubai Investments, acted as the financial adviser for the deal, the statement said.
“We aim to capitalise and leverage through our shared expertise to further strengthen NGI’s reputation as a leading insurance provider in the region,” Mr Bin Kalban, said.
Set up in 1995, Dubai Investments has interests in various sectors including real estate, industrial, financial, healthcare and education.
The company, in which Investment Corporation of Dubai holds an 11.54 per cent stake, owns businesses such as Dubai Investments Park, venture capital company Masharie, Al Mal Capital and the district cooling company Emicool. Dubai Investments also increased its shareholding in Globalpharma in 2019 in order to secure full ownership.
Dubai-listed NGI provides insurance to both individuals and corporates in areas such as motor, medical, travel, home, personal accident, property and marine, among others.
The company reported a net profit of Dh46.1 million ($12.5m) in 2020, compared with Dh17.4m in the previous year on the back of higher underwriting profit.
