Abu Dhabi’s holding company ADQ signed a definitive agreement to acquire the remaining 20 per cent equity stake in the National Health Insurance Company, or Daman, as it is known, from Munich Re, as it continues to boost its healthcare portfolio.
Munich Re will continue to be Daman’s reinsurer as part of the deal and will provide support in delivering healthcare insurance services during the next stage of Daman's growth, ADQ said on Thursday.
It did not give the value of the transaction, which is subject to regulatory approvals.
“We have worked closely with Munich Re on setting Daman’s strategy as an industry leader in the insurance sector,” said Fahad Al Qassim, executive director of health care and pharma at ADQ.
“Acquiring the remaining stake will help us to further position Daman as a pioneer in healthcare insurance and build on its operational excellence, innovative solutions, valuable products and government partnerships.”
Set up in 2018, ADQ has a portfolio of companies in strategic sectors of Abu Dhabi’s non-oil economy, including tourism and hospitality, aviation, transport, logistics, industrial, property, media, health care, agriculture and food and financial services.
ADQ’s portfolio of companies includes the Abu Dhabi Power Corporation, Abu Dhabi Airports, Abu Dhabi Ports, Etihad Rail, healthcare provider Seha, insurer Daman, Abu Dhabi National Exhibitions Company and media companies Abu Dhabi Media and twofour54.
The Abu Dhabi state holding company entered into a definitive agreement last month to buy Switzerland-based pharmaceutical company Acino, its biggest deal within the healthcare and pharmaceuticals sector to date. It is also looking to buy up to 90 per cent of the share capital of Egypt’s Sixth of October for Development and Investment Company along with Abu Dhabi’s Aldar Properties.
Earlier this year, ADQ bought Egypt’s Amoun Pharmaceutical Company from Canada’s Bausch Health for $470 million to build its healthcare portfolio. It is also investing up to $1 billion in Abu Dhabi-based retail chain Lulu International Holdings to help the company expand its operations in Egypt.
“We have collaborated with Daman since its inception and we look forward to continuing our steadfast commitment to supporting the nation’s leading insurance provider as it embarks on its next stage of growth,” said Thomas Blunck, member of the board of management at Munich Re.
Established in 2006, Daman is now one of the UAE’s largest health insurance providers with more than 2.5 million members.
Daman introduced a new corporate strategy earlier this year to help transform its business operations. It appointed Hamad Al Mehyas as the company’s new chief executive in 2020. He led the company after a major reorganisation in 2019.