The joint venture will initially offer a range of takaful life and health insurance products and pension plans to retail and corporate customers in the Gulf region.
The joint venture, in which Ahli United Bank and Legal & General would both initially hold a 50% stake, will be headquartered in Bahrain and regulated by the Central Bank of Bahrain.
It will have an authorized capital of $200m of which $25m will be initially issued and paid up.
Legal & General Assurance Society, part of Legal & General Group Plc, established in 1836, is AA+ rated by Standard and Poor's and headquartered in London.
Legal & General has £297bn in funds under management (as at 31 December 2007) and over 5.7 million customers in the UK. The Group is listed on the London Stock Exchange, is a FTSE 50 company, and has international operations in France, Netherlands, USA and India.
Fahad Al Rajaan, Chairman, Ahli United Bank, said: "We are pleased to have entered into this Memorandum of Understanding with Legal & General whose experience in the insurance sector will provide the technical and operational expertise for the joint venture company. Coupled with Ahli United Bank's expanding regional distribution network the joint venture will provide the framework to cater for the increasing and diversified insurance needs within the Gulf region.
"Ahli United Bank aims to become a leading pan-Gulf-Middle Eastern provider of comprehensive financial services. The joint venture represents an important step forward in further diversifying Ahli United Bank's business profile and offerings, besides meeting its strategic objective of developing a diversified financial services model centred on commercial banking, investment banking, private banking, asset management and life insurance with an enhanced Shari'a compliant business focus and contribution".
The new joint venture company, subject to regulatory and statutory consents, expects to launch its operations in Bahrain later this year, and to extend its product offering in the region in a phased manner.
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Ahli United Bank and Legal & General Group sign MOU to establish a regional life insurance company
- United Arab Emirates: Thursday, April 03 - 2008 at 15:21
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Ahli United Bank BSC today announced that it has signed a Memorandum of Understanding with the UK-based Legal & General Group Plc to set up a new joint venture company, subject to necessary regulatory and statutory approvals.
Fahad Al Rajaan, Chairman, Ahli United Bank.
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Posted by Eman HassanThursday, April 03 - 2008 at 15:21 UAE local time (GMT+4)
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About Legal & General:
Legal & General is a leading UK risk, savings and investment management group. Founded over 170 years ago, Legal & General today provides life assurance and other financial protection products, annuities and long-term savings products including ISA's and pensions. With £297 billion in funds under management, it is also one of the largest asset managers in the UK. Legal & General has over 5.7 million UK customers. Our products are sold through a wide range of bank and building society relationships, through Independent Financial Advisers and also directly to customers. Legal & General Assurance Society Limited, our principal operating company, is one of Europe's top rated life companies for financial strength, with an AA+ rating from Standard & Poor's and Aa1 from Moody's.
About Ahli United Bank:
Ahli United Bank B.S.C. (AUB) and its affiliated companies (together known as Group) is engaged in conventional and Islamic - retail and commercial banking business, and investment banking, global fund management and private banking businesses. AUB Group operates as a locally incorporated full commercial bank under a retail banking licence issued under the integrated licensing framework of the Central Bank of Bahrain. It operates a 90 branch network through its subsidiaries in the State of Kuwait and the United Kingdom and through its associates in the State of Qatar, Sultanate of Oman, Arab Republic of Egypt and Republic of Iraq. AUB also has a regional investment banking arm operating in Bahrain, Kuwait, Saudi Arabia, Oman, UAE, Egypt and Jordan that offers brokerage, corporate finance and asset management (regional and international) products and services. AUB is listed on the Bahrain and the Kuwait stock exchanges.
As at 31 December 2007, AUB Group had assets totalling US$23.0 billion with loans and deposits totalling US$12.0 billion and US$17.8 billion respectively. Funds under management stood at US$8.4 billion as at 31 December 2007. For fiscal 2007 AUB group achieved a profit of US$296.3 million, a growth of 42.8% over previous year, with the return on average equity at 18.0%.
AUB is rated A- (stable) by Standard & Poor's as well as Fitch Ratings reflecting the robust growth in business and profitability achieved through prudent management and successful integration of its bank acquisitions in Kuwait, Qatar, Iraq, Egypt and most recently in Oman.
AUB has been awarded the Best Bank in the Middle East for three consecutive years - 2006, 2007 and 2008 by Global Finance. For 2007, AUB has received the Best Bank in Middle East award from Euromoney and Bank of the Year - Bahrain from The Banker.
For further information, please contact:
Maya Ribeiro, Action Bahrain
TEL: +973 17234553
Legal & General is a leading UK risk, savings and investment management group. Founded over 170 years ago, Legal & General today provides life assurance and other financial protection products, annuities and long-term savings products including ISA's and pensions. With £297 billion in funds under management, it is also one of the largest asset managers in the UK. Legal & General has over 5.7 million UK customers. Our products are sold through a wide range of bank and building society relationships, through Independent Financial Advisers and also directly to customers. Legal & General Assurance Society Limited, our principal operating company, is one of Europe's top rated life companies for financial strength, with an AA+ rating from Standard & Poor's and Aa1 from Moody's.
About Ahli United Bank:
Ahli United Bank B.S.C. (AUB) and its affiliated companies (together known as Group) is engaged in conventional and Islamic - retail and commercial banking business, and investment banking, global fund management and private banking businesses. AUB Group operates as a locally incorporated full commercial bank under a retail banking licence issued under the integrated licensing framework of the Central Bank of Bahrain. It operates a 90 branch network through its subsidiaries in the State of Kuwait and the United Kingdom and through its associates in the State of Qatar, Sultanate of Oman, Arab Republic of Egypt and Republic of Iraq. AUB also has a regional investment banking arm operating in Bahrain, Kuwait, Saudi Arabia, Oman, UAE, Egypt and Jordan that offers brokerage, corporate finance and asset management (regional and international) products and services. AUB is listed on the Bahrain and the Kuwait stock exchanges.
As at 31 December 2007, AUB Group had assets totalling US$23.0 billion with loans and deposits totalling US$12.0 billion and US$17.8 billion respectively. Funds under management stood at US$8.4 billion as at 31 December 2007. For fiscal 2007 AUB group achieved a profit of US$296.3 million, a growth of 42.8% over previous year, with the return on average equity at 18.0%.
AUB is rated A- (stable) by Standard & Poor's as well as Fitch Ratings reflecting the robust growth in business and profitability achieved through prudent management and successful integration of its bank acquisitions in Kuwait, Qatar, Iraq, Egypt and most recently in Oman.
AUB has been awarded the Best Bank in the Middle East for three consecutive years - 2006, 2007 and 2008 by Global Finance. For 2007, AUB has received the Best Bank in Middle East award from Euromoney and Bank of the Year - Bahrain from The Banker.
For further information, please contact:
Maya Ribeiro, Action Bahrain
TEL: +973 17234553
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