The Abu Dhabi Securities Exchange General Index (ADXGI) lost 0.88 per cent to close at 4,871.57 points on Sunday, February 23. The shares of Green Crescent Insurance Company (GCIC) jumped by 2.19 per cent, hitting AED1.40. Earlier in the day, GCIC said in a filing to the market that it’s called for a shareholders’ meeting to be held on March 26 in order to get the nod for a planned strategic alliance with AXA and its UAE partner Kanoo Group. In case of an approval, the aforementioned groups would be the primary investors for capital increase worth AED100 million ($27m). The move could trigger a major consolidation in the UAE insurance sectors, which has seen profit margins declining over the years amid an excess supply of insurance products in the Gulf state. GCIC Chairman Sheikh Saeed Bin Hamdan Al Nahyan says: “The linkage of GCIC’s extensive local market knowledge and technical experience with AXA’s deep industry expertise and capabilities represents a unique opportunity for GCIC to expand our product offering and market share.” He adds: “The proposed deal is expected to provide significant value creation for shareholders, enabling GCIC to further penetrate the UAE health segment while leveraging our life license to provide further growth in premiums and margins.” The shares of Islamic insurance operator Abu Dhabi National Takaful jumped 14.75 per cent to AED7. Emirates Insurance Company edged up by 5.88 per cent to AED7.20.
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