By: Ramy Sameeh

Abu Dhabi – Mubasher:  Convertible bonds in the AXA-Kanoo alliance are expected to be converted by mid-September at the latest, said Mishal Hamed Kanoo, board member at Abu Dhabi-listed Green Crescent Insurance Company (GCIC).

The convertible bonds will raise Green Crescent’s capital to AED 200 million and will help it expand its capital base and form a long-term strategic alliance, Kanoo told Mubasher in an interview.

France’s AXA and its UAE partner Kanoo Group announced a plan in February 2014 to buy a stake in GCIC by investing AED 100 million as a capital increase through convertible bonds.

This year, GCIC plans to launch a new brand that includes the AXA trademark and also expand its staff in order to build a strong institution that offers life insurance and savings programmes, Kanoo revealed.

He noted that GCIC’s profits will be modest in 2015, following costs the company will incur due to the convertible bonds and the changing of its brand, but said he expects the firm to see good financials the next year.

The insurance company reported a net profit of AED 40,000 in 2014 against a loss of AED 4.65 million in 2013.

GCIC will continue to develop its operations and expand its business range in health insurance in order to build a diversified portfolio, said Mishal, adding that the company will continue following its strategy which focuses on cutting costs and improving technical results and financial performance.

He revealed that operating costs retreated to AED 28 million in 2014 compared to AED 39 million in 2013.

“We are committed to providing positive financial returns to our shareholders,” the board member said, adding that through its strategic market scheme, GCIC will achieve a promising place in the UAE’s insurance market.

Translated by: Nada Adel Sobhi