Solidarity Takaful Receives Initial Approval To Dissociate From Egyptian Market

The Egyptian Financial Supervisory Authority (EFSA) approved the request submitted by Solidarity Family Takaful to dissociate from the Egyptian market and sell the company for an Arab insurance company.

Amwal Al Ghad was informed that Solidarity Family Takaful submitted an official request at the beginning of this week to sell the company after receiving two purchasing offers from a Lebanese company and a German company working in Egypt.

The Lebanese Company is the most likely to acquire Solidarity as it needs to enter the Egyptian market and its purchasing offer is better than that of the German. 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 from two to three months.

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. The Company’s paid-up capital is EGP 40 million and authorized capital is EGP 60 million.

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.