Dubai Investments, a Dubai-listed investment holding company, increased its stake in National General Insurance Company (NGI) by 15.19 per cent in a Dh71 million ($19.36m) deal as it looks to expand its footprint in the UAE’s insurance sector.
The company bought 22.78 million shares of NGI from Emirates NBD for Dh3.12 a share in a “direct deal”, Dubai Investments said in a statement to the Dubai Financial Market on Wednesday, where its shares trade.
Emirates NBD, Dubai’s biggest lender by assets, confirmed the deal in a separate bourse filing.
Dubai Investments in April raised its stake in the UAE insurer to 29.99 per cent and said it "aims to buy more into the company".
With the latest deal, Dubai Investments now controls a 45.18 per cent stake in NGI, which provides insurance to both individuals and corporates in areas such as motor, medical, travel, home, personal accident, property and marine, among others.
“Acquiring an additional stake in NGI, and being the biggest shareholder in the company, reiterates our increased focus on a resilient insurance sector," Khalid Bin Kalban, chief executive and vice-chairman of Dubai Investments, said. "The insurance market is set to expand further over the next few years and with NGI being ranked among the top providers in the UAE market, we are positive our concerted efforts and expertise will contribute positively towards bolstering the sector."
The company, in which Investment Corporation of Dubai holds an 11.54 per cent stake, owns businesses such as Dubai Investments Park, venture capital company Masharie, Al Mal Capital and the district cooling company Emicool. Dubai Investments also increased its shareholding in Globalpharma in 2019 to fully own the pharmaceutical company.
Dubai Investments is assessing acquisitions in healthcare, education and other sectors, and will soon start a new real estate project worth Dh1 billion in Ras Al Khaimah as the UAE's economy recovers from the coronavirus pandemic, Mr Kalban told The National in May.
The company reported a Dh123.8m profit for the three months to March 31, compared to a Dh6.8m loss in the same period last year as total income increased by more than 37 per cent to Dh637.6m.