Latest news with #UnionInsurance
Zawya
10 hours ago
- Business
- Zawya
Union Insurance takes further measures to strengthen its financial position
Dubai, UAE - In line with the company's efforts to strengthen its financial position, Union Insurance has decided to offset accumulated losses by reducing its capital from AED 330 million to AED 230 million. This measure is currently being implemented with the relevant authorities. The Abu Dhabi Securities Exchange announced yesterday that the trading company's shares has been suspended in connection with this matter. Trading is scheduled to resume on Monday, June 30, 2025. It is worth noting that after this reduction, the company will continue to maintain a capital that is more than double the minimum required for insurance companies, according to Central Bank regulations. Furthermore, company's solvency and liquidity continue to be strong and recently solvency reached 144%, according to the company's latest disclosure. The reduction will strengthen the company's financial position, and ability to compete in the insurance market. Union Insurance Company has reported a significant improvement in its financial results, achieving net profits of AED 38.3 million in 2024, compared to a loss of AED 2.5 million in 2023. The announced results for the first quarter also reflect a positive indication of the company's continued success. Mr. Ramez Abou Zaid, Chief Executive Officer of Union Insurance Company, expressed his optimism about the company's positive results for 2025, reflecting its continued success and progress. The company decided to appoint Fitch Ratings as its designated financial rating agency, and the former rating agency is likely to issue a final statement on the company in the near future. Fitch assigned the company its first-ever Financial Strength Rating (IFS) of "BBB" with a positive outlook, reflecting the strength of Union Insurance's balance sheet, the efficiency of its operational performance, and its reinsurance support. About Union Insurance Company Established in 1998 and listed on the Abu Dhabi Securities Exchange, Union Insurance Company is regulated by the UAE Central Bank and has a paid up capital of over AED 330 million. The company provides a wide range of individual and commercial insurance products to clients in the UAE and wider Middle East.
Zawya
4 days ago
- Business
- Zawya
Union Insurance reduces capital by 30.5% to offset accumulated losses
Abu Dhabi: Union Insurance Company reduced its capital by 30.50% from AED 330.93 million to AED 230 million to offset accumulated losses amounting to AED 142.74 million. The transaction will be executed by utilizing AED 41.80 million from reserves, including AED 21.85 million from the statutory reserve and AED 19.95 million from the legal reserve, to partially offset the losses. Meanwhile, the remaining AED 100.93 million will be written off by cancelling a corresponding number of shares. The last trading day before the capital adjustment is scheduled for 24 June 2025, with trading suspended on 25 and 26 June. The capital cut will take effect before trading hours on 30 June 2025, which will also mark the first trading day following the reduction.
