Green Crescent has won regulatory approval for a tie-up with Axa, the French insurance multinational, amid fierce competition in the sector.
It has also been given the nod by regulators to double its share capital to Dh200 million through a convertible bond sale, the Abu Dhabi-based insurer said in a regulatory filing.
“We are very optimistic about the strategic alliance with AXA as we envision that through this deal, Green Crescent will realize considerable growth in gross written premiums and improved profitability in 2014 and future years,” said Nathan Kennedy, the managing director and interim chief executive of Green Crescent.
Under a deal first announced in February, Axa and Kanoo Group would be the primary investors of a capital increase in Green Crescent. The deal is still subject to shareholder approval with an extraordinary general meeting scheduled for May 20.
The proposed alliance is seen as a sign of consolidation in the hotly competitive local insurance sector after years of some insurers offering premiums at below the real cost.
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