RAKBANK announced that it had received shareholder approval for the acquisition of Ras al Khaimah National Insurance Company (RAKNIC). Shareholders voted in favour of the Bank buying a majority stake at AED 3.64 per share during its Ordinary General Assembly held today at the Bank’s headquarters in Ras Al Khaimah. This will be through an offer to all shareholders of RAKNIC.

Founded in 1974, RAKNIC is a successful, insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue general and life policies of Conventional Insurance.

Peter England, RAKBANK CEO, said: “RAKBANK has been greatly successful since it re-launch in 2001 by focusing on unsecured lending to individuals and small businesses. Today, we see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries, particularly the local insurance market, which is estimated to exceed AED 30 billion this year. The Bank has undertaken a high level assessment of the value that could be created over the coming few years through the acquisition, and we believe the Bank can increase income streams, enhance our market presence, and create additional value for our shareholders. We are firm believers in service excellence and therefore see potential to offer customers a more wholesome experience in the long run by extending a one-stop shop for banking and insurance.”

The acquisition is still subject to approval by the Central Bank and the Insurance Authority.