Takaful Emarat (PSC)

On August 9, 2024, a disclosure was made regarding a board meeting for Takaful Emarat Insurance PSC, scheduled for Tuesday, August 13, 2024, at 12:30 PM via MS Teams. The agenda includes the approval of a new Board member to replace Mr. Saeed Al Sharid, the review and approval of the company's unaudited interim condensed consolidated financial statements for the second quarter and the six months ending June 30, 2024, and a discussion on business updates. The disclosure was signed by Mohammed Abu Quora, the Chief Executive Officer, on August 9, 2024, and includes the company’s seal.

On June 14, 2024, Takaful Emarat Insurance PJSC held its Annual General Assembly meeting both physically at Al Moosa Tower 2, Dubai, and electronically. The following resolutions were made: 1. Approval of the Board of Directors' report on the company's activities and financial position for the year ending December 31, 2023. 2. Approval of the Auditor’s Report for the year ending December 31, 2023. 3. Approval of the Internal Shariah Supervisory Board’s Report for the year ending December 31, 2023. 4. Approval of the company’s balance sheet and profit and loss account for the year ending December 31, 2023. 5. Approval of the appointment of the members of the Internal Shariah Supervisory Committee.

Takaful Emarat – Insurance PSC announced strategic measures to enhance its financial position and ensure long-term stability. The Board of Directors has recommended a special resolution for the upcoming AGM on June 14, 2024, seeking shareholder approval to increase the company's share capital. Despite recent financial challenges, the company has performed well under new management, which restructured the executive team and gained shareholder approval for a capital increase of AED 125 million to offset accumulated losses. In Q1 2024, the company achieved 79% growth in Takaful revenues, reaching AED 84 million. The Board also proposed an additional capital increase of AED 60 million to be voted on at the AGM, bringing the total capital increase to AED 185 million, aimed at supporting business expansion.

The Board of Directors of Takaful Emarat Insurance PJSC has invited its shareholders to the annual general assembly meeting, which will be held both physically and electronically on Friday, 14 June 2024. The agenda includes reviewing and approving the Company’s Board of Directors report, the Auditor’s Report, the Internal Shariah Supervisory Board’s Report, and the Company’s balance sheet for the year ended 31 December 2023. The meeting will also appoint members of the Internal Shariah Supervisory Committee, discharge the members of the Board of Directors and the auditors from liability for the year ended 31 December 2023, appoint the auditors for the year 2024, and approve the reinstatement of the Company Articles of Association. A special resolution will be considered regarding the continuation or dissolution of the company's activity prior to its prescribed term, in accordance with federal law.

Takaful Emarat Insurance (PSC) reported accumulated losses amounting to AED 190,192 (in thousands) in Q1 2024, equating to 127% of its paid-up capital. This is in accordance with the SCA Board of Directors’ Decision No. (32/R.M.) of 2019, which requires disclosure when losses reach or exceed 20% of paid-up capital. The losses were mainly due to reduced margins and higher medical claims expenses, lower-than-expected returns from investments, and business decline following a merger and acquisition project. The company also wrote off some bad debts and revaluated some assets, adding to the losses. To address this, the company initiated a capital restructuring process in early 2024, approved a capital increase of AED 185Mn, and is working to improve its IT systems and investment strategies.

The board meeting of Takaful Emarat Insurance PJSC was held on Wednesday, 15 May 2024, from 15:00pm to 16:30pm. Five board members were present, achieving a quorum of 88.3%. The board ratified the minutes from the previous meeting held on 5th April 2024, and approved the unaudited interim consolidated financial statements for Q1 ending 31 March 2024. Other matters were also discussed. The meeting's decisions were signed off by Board Secretary, Rayan Omer.

Takaful Emarat Insurance PJSC will hold a board meeting on Wednesday, 15th May 2024 at 15:00pm. The agenda includes ratifying the minutes of the previous Board of Directors meeting held on 5th April 2024, discussing and approving the unaudited interim consolidated financial statements for Q1 ended 31st March 2024, discussing the latest insurance business updates, and addressing any other business. The meeting disclosure was signed by Board Secretary Rayan Omer on 13th May 2024.

Takaful Emarat Insurance has released a report detailing its financial situation in compliance with the SCA Board of Directors’ Decision No. 32/R.M. of 2019. The report reveals the company's accumulated losses amounting to AED 181,264 (in thousands), which is 120.8% of its paid-up capital. The losses have been attributed to a series of factors including reduced margin and higher medical claims expenses than expected, lower returns from investments, the impact of a merger and acquisition project, and the writing off of bad debts. The company has initiated steps to address the situation, including a capital restructuring process, the development of a long-term business plan, and enhancements to its IT systems.