By: Amr Adel

Dubai – Mubasher: Dubai Islamic Insurance and Reinsurance (AMAN) plans to expand in external markets in the coming period when suitable opportunities arise, with a focus on Egypt and Algeria, CEO Jihad Faitrouni said Tuesday.

In an exclusive interview with Mubasher, Faitrouni said the company’s management strongly wants to enter promising markets in the Takaful insurance sector. AMAN has put its expansion at the top of its agenda for 2015, he noted, adding that moving forward is bound by the completion of necessary studies at the present time.

Egypt and Algeria top AMAN’s list of markets for expansion, the CEO revealed, noting that the Takaful insurance sector in Egypt is a promising one that is witnessing many developments and significant growth rates. Meanwhile, the Algerian market has proven its resilience in a short period, he added.

AMAN won’t likely complete the expansion step abroad this year, Faitrouni said, as the company is bound by the results of ongoing studies which will be completed during the second half of the year.

AMAN’s plans will not affect its presence in the local market, which is the priority now, stressed the CEO.

The company is planning to increase its returns from basic operations in the fields of real estate and vehicle insurance, as well as marine, medical and life Takaful in the UAE’s growing and developing trade, business and industry, according to Faitrouni.

These operations represented 40% of AMAN’s revenues in 2014, he said, and the company plans to increase revenues from these activities to more than 50% this year.

The UAE has a variety of products for Takaful insurance and Islamic economy. Moreover, the initiative to make Dubai the capital of Islamic economy has given companies good opportunities for investment across the country, AMAN’s CEO said.

Statistics by the UAE’s Insurance Authority (IA) by the end of 2014 revealed a rise in the number of Takaful insurance firms to 11, with a total combined capital of AED 2.3 billion.

These companies’ investments by the end of last year reached AED 3 billion, the IA said, adding that Takaful insurance contributes 1% to total insurance premiums in the country’s insurance sector, which reached AED 33 billion by the end of 2014.

AMAN is currently working on launching a new Takaful insurance product by the end of the second quarter this year that will be first of its kind in the UAE market, revealed Faitrouni.

He told Mubasher that AMAN is currently examining the possibility of restructuring its investment portfolio outside the UAE through an investment committee that will be formed to prepare several studies related to these investments and the company’s exit from them. He expects these studies to be completed by the end of the year.

The Dubai-listed firm boasts investments in Algeria, Kuwait, Bahrain and other global markets. It also has stakes in Al Salam Bank Bahrain (ASBB), Al Salam Algeria and Kuwait’s Boubyan Takaful Insurance.

The committee will also examine the company’s stock portfolio in other companies listed on the Dubai Financial Market (DFM) and select the correct time to exist these stocks, the CEO said.

He expects another profitable year for the insurance firm in 2015, achieving  greater local growth as it focuses on its main activities as well as its restructuring plan, which was launched in early 2014 and included significant changes in various departments across the company.

AMAN succeeded in turning its AED 52.8 million losses in 2013 to a profit of AED 2.2 million in 2014.

The company was established in the second quarter of 2002 and is currently listed on the DFM. It provides a variety of sharia-compliant insurance services including car, air and marine transport insurance, as well as  social Takaful insurance and insurance against fires and accidents.

Translated by: Nada Adel Sobhi