Shareholders of Islamic Arab Insurance (Salama) are set to vote on a proposal to reduce the company’s capital from AED 1.21 billion ($329 million) to AED 939 million. 

The company seeks to write off accumulated losses of AED 270 million. 

The vote will take place at the company’s general assembly on January 16, a statement to Dubai Financial Market (DFM) said. 

The statement said the reduction will be through writing off the accumulated losses after utilisation of statutory reserves of AED 101 million as of December 31, 2021, by cancelling the equivalent number of shares. 

There will also be a vote on approving Ajit Joshi as a new board member following the resignation of Mohammed Hussain Mohammad earlier this year, as well as changes to the company’s articles of association. 

Salama announced in October plans to merge with fellow Islamic insurer Takaful Emarat, and that it was in talks to acquire a third insurer, Aman. 

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda) 

imogen.lillywhite@lseg.com