Competitors Over Acquiring Solidarity Did Not Submit Purchasing Offers: EFSA

The Egyptian Financial Supervisory Authority (EFSA) affirmed it did not receive any official purchasing offers to acquire Solidarity Family Takaful, although there are negotiations held by Allianz Insurance and a Lebanese insurance company with Solidarity over buying its license and financial portfolio.

Sources said the prices offered by both companies are close; therefore, the competition between the companies is in the payment mechanisms.The talks are expected to conclude in August and the acquisition process to be finalized within two to three months.

It is worth mentioning that the real reason behind Solidarity’s dissociation from the Egyptian market is that the parent company in Bahrain had pulled out of the insurance market.

Solidarity Family Takaful collected net premiums of EGP 12.2 million by the end of FY 2010/2011, according to the statistical book issued by EFSA. Udo R. Krueger, chairman of Allianz Insurance Egypt and CEO and chairman of Allianz Life Insurance, earlier told Amwal Al Ghad that the Company targets to venture in takaful (Islamic insurance) sector. Allianz has two options whether it will ask for a license to offer takaful services and that would take six months or it will acquire an existing takaful company.