The Austrian insurance group UNIQA and the property and casualty insurance company Al Buhaira, located in Sharjah (U.A.E.), are jointly founding a life and health insurance company. This was announced today by Abdullah Jumaa Al Sarri, member of the Al Buhaira Board of Directors and member of the founding-committee, ABNIC CEO Nader T. Qaddumi and UNIQA CFO Hannes Bogner in Sharjah. The new company named "Takaful Al-Emarat" will be located in Dubai, U.A.E., and offer health and life insurance that comply with Islamic Shari’a law. UNIQA Group Austria will hold a 15% stake in the company, Al Buhaira will hold 20%, other prominent founders 10% and 55% of the share capital of the new company will be offered as IPO to the public.

UNIQA CEO Konstantin Klien comments: "This is a textbook joint venture, in which the specific strengths of the individual partners complement each other to create a sum that is greater than its parts. As one of the leading insurance companies in the UAE region, Al Buhaira brings its market knowledge and a connection to the region based on years of activity. UNIQA in turn supports the venture with its broad know-how in the areas of life and health insurance. In view of the announcement of mandatory health insurance for the expatriates working in the Emirates – that is 80% of all workers – and the high growth potential in life insurance, Al Buhaira has long been on the search for an international partner with specific expertise in personal insurance. We are proud that UNIQA was selected for this and we will contribute to success in the region with the experience we have gained in Austria and the 19 other European markets in which we are active."

Another positive aspect of the joint venture is the fact that UNIQA can acquire know-how in the area of "Islamic products". Corresponding demand already exists in some of the 20 markets in which UNIQA is represented in Eastern and South Eastern Europe. Klien: "These classes of customers definitely exist, and regardless of any further regional expansion, experts foresee a rising demand for such products. After all, there are roughly 16 million Muslims living in Europe. As a modern company, we must orient ourselves based on demand and the wishes of our customers."

In addition to its financial participation, UNIQA will delegate senior staff to assist in establishing the company during the next weeks. The new insurance company will initially offer its products within the United Arab Emirates. However, consideration is already being given to an expansion of the business to GCC, MENA and other Islamic countries.

Al Buhaira National Insurance
As a leading insurance Co. in the region, Al Buhaira National Insurance stands for reliability and quality. The company was founded in 1978 at the order of the ruler of Sharjah and since then has successfully offered all types of property insurance. The shares of Al Buhaira have been traded on the Abu Dhabi stock exchange since 2005. The company has grown significantly in recent years and was able to increase its earned premiums from AED 24 million (approx. €4.3 million) in 1986 to AED 523 million in 2007 (approx. €93.7 million). The capital investments in 2007 were at AED 1,528 million (approx. €274 million).

Insurance market in the U.A.E.
Roughly 50 insurance companies are active in the United Arab Emirates – half of these are based outside U.A.E. The total premium volume (2005) is roughly EUR 2,066 million and is expected to see two-digit growth over the next few years. At €317 million, life insurance makes up only 15.3% of the total business volume. Non-life insurance types account for €1,749 million. Roughly 1.7% of the gross domestic product of the U.A.E flows into insurance premiums (Austria 6.1%) – of which 0.3% into life insurance (Austria: 2.8%) and 1.4% into non-life insurance types (Austria: 3.3%).

Insurance policies in accordance with Islamic Shari’a
In the Islamic world, special rules apply to insurance companies (as for banks, as well) that take into account the prohibition on interest and gambling. Takaful, as these insurance products are called, means "guarantee" or "guaranteeing each other". They are based on the idea of a community of insured that shares risks and also takes part in the profit of the insurance company. Policy holders make payments to joint funds that are managed by the insurance company, which invests the capital according to Islamic principles. In this way, Takaful insurance companies are similar to mutual insurance associations.