Takaful Emarat Rebounds with Strategic Initiatives
Takaful Emarat, a leading insurance provider in the UAE, has shown a promising turnaround in its financial performance.
Summary
Takaful Emarat has successfully reduced its accumulated losses through strategic initiatives, showcasing a positive financial outlook for the future.
Takaful Emarat, a public joint stock company based in the United Arab Emirates, has recently announced a significant turnaround in its financial performance. The company, which operates under the principles of Islamic Sharia’a, has faced accumulated losses since 2019. These losses were primarily attributed to higher-than-expected medical claims and lower investment returns. Additional financial strain was caused by a merger and acquisition project, asset revaluation, and restated financial statements for equity investment impairments.
Despite these challenges, Takaful Emarat has implemented several strategic initiatives to address its financial woes. On October 21, 2024, the company completed a reduction of accumulated losses by setting off against share capital amounting to AED 124.3 million. Furthermore, on December 6, 2024, the company issued 185 million ordinary shares through a rights issue at AED 1 per share, equal to the nominal value of the Group's ordinary shares.
These efforts have resulted in a positive shift in shareholders' equity, which moved from a deficit of AED 39.7 million in 2023 to a surplus of AED 163.2 million in 2024. Additionally, the company has developed a long-term business plan aimed at recovering accumulated losses by writing solid, profitable business. This plan has already started to bear fruit, as evidenced by the company's impressive financial performance in 2024.
One of the key highlights of Takaful Emarat's recent performance is its optimized investment strategies, which have led to a net investment income of AED 32 million for the year ending December 31, 2024. This represents a remarkable 106% growth compared to the AED 15.6 million achieved in 2023. Moreover, the company has achieved Takaful revenue of AED 420 million, an 84% increase compared to AED 229 million last year.
Given these positive developments, Takaful Emarat appears to be on a strong path to recovery. The company's strategic initiatives have not only addressed its accumulated losses but have also set the stage for sustainable growth in the future. As a result, investors may find Takaful Emarat to be a promising opportunity in the insurance sector.
Considering the company's recent achievements and the promising outlook for its future, it would be advisable for investors to hold their positions in Takaful Emarat and monitor its progress closely.
Source
Summary
The document outlines the financial situation of Takaful Emarat – Insurance (PSC) as of April 8, 2025, in accordance with the SCA Board of Directors’ Decision No. (32/R.M.) of 2019. This decision requires companies with accumulated losses of 20% or more of their paid-up capital to comply with specific procedures. For the year 2024, Takaful Emarat reported accumulated losses of AED 43,289,000, representing 20.6% of its paid-up capital. The losses began in 2019 due to higher-than-expected medical claims and lower investment returns, compounded by a merger and acquisition project, asset revaluation, and restated financial statements from 2020 to 2022. To address these losses, the company reduced its accumulated losses by setting off against share capital amounting to AED 124.3 million and issued 185 million ordinary shares through a rights issue in late 2024. This resulted in a positive shift in shareholders' equity from a deficit of AED 39.7 million in 2023 to equity of AED 163.2 million in 2024. The company also implemented a business plan aimed at writing profitable business and adopted new investment strategies, achieving a net investment income of AED 32 million in 2024, a 106% increase from 2023. Furthermore, Takaful revenue grew by 84% to AED 420 million compared to the previous year.
