According to industry sources, Axa has bought, or is about to buy, a loss making medical insurance company based in Abu Dhabi called Green Crescent.
A spokesperson for Axa Gulf said it would not comment on market rumour and that there had been no change in Axa’s strategy in the Gulf or Middle East.
Axa currently has life and general insurance licences in Bahrain, Saudi Arabia and Oman but only general insurance licences in the United Arab Emirates and Qatar.
The UAE Insurance Authority stopped approving licences in 2008 and, as a consequence, there are only a handful of insurance companies operating in the UAE which are licensed by it. These include Friends Provident International, Zurich International Life and Generali International.
In addition, a number of companies, which sell insurance products in different markets, have chosen different routes into the UAE. These businesses include Skandia International and Standard Life which both operate from the Dubai International Financial Centre but which do not directly sell life insurance products.
Another provider currently operating in the UAE is RL360°. The company has its office located in the Dubai Investment Park and currently holds a commercial licence which allows it to have a representative office and to conduct “pre-sales activity” within the UAE. Commercial licences are granted by the Department of Economic Development of the Government of Dubai.
The company previously confirmed to International Adviser, once an application has been made as a result of pre-sales activity, “it is submitted to RL360°’s headquarters in the Isle of Man and all aspects of administration are then conducted by the IoM-based team”.
Meanwhile, the Axa spokesperson added that, while the life market in the UAE was clearly attractive, the company is having “great success” in other areas, particularly the health insurance market, at the moment.
