SHUAA Capital psc (DFM: SHUAA), the leading asset management and investment banking platform in the region, has announced that its insurance assets under management have grown to USD 136 million to date and are expected to reach half a billion dollars within the next three years.
Over the past three years, SHUAA has managed the equity and debt (fixed income) portfolios of five major insurance companies through its managed funds and discretionary portfolios. SHUAA’s managed funds provide insurance investors with the opportunity and comfort to invest in a regulated fund structure that is diversified, achieves cost efficiencies and economies of scale, and creates consistent, long-term value.
According to S&P Global Ratings’ 2021 GCC Insurers Report, about 84% of insurers in the GCC maintain capital adequacy above the confidence level ‘AAA’ in their capital model, compared to about 59% across EMEA. As a result, insurers in this region continue to seek investments that have low volatility and generate stable cash income that can help them manage their assets and liabilities. SHUAA’s extensive knowledge of the insurance sector, combined with its asset management capabilities, has solidified its position as the partner of choice for insurers seeking higher and more consistent returns through diversification strategies that meet regulatory requirements.
Ajit Joshi, MD and Head of Public and Private Markets at SHUAA Capital, said: “Insurance, both conventional and Takaful, is a strong recurring income segment of SHUAA’s asset management business despite low margins, and as such we are focused on strategically growing our insurance assets under management. We are also investing significantly in expanding our team. Just this year, we hired a portfolio manager with experience in global equities and plan to hire more before the end of the year. This is in line with our strategy to expand our range of products and services with the right capabilities to meet the changing needs of our clients while identifying long-term value creation opportunities for them.”
In 2018, SHUAA recognized the opportunity to invest in insurance companies given the tremendous potential of the sector and worked with its portfolio companies to achieve better governance, value creation and profitability. Part of SHUAA’s investment in insurance companies is through Goldilocks, an open-ended fund domiciled in ADGM and managed by its subsidiary SHUAA GMC Limited, which is regulated by the FSRA.