Specialist run-off acquirer and manager AXA Liabilities Managers (AXA LM) has agreed to purchase a majority stake in Emirates Re, a UAE-based independent Islamic reinsurance firm, for an undisclosed sum.

Emirates Re, which operates from the Dubai International Financial Center (DIFC), manages Retakaful business.

The firm’s gross reserves total $69m and are essentially made of Middle East & North African, Asian and India-based property, motor, accident, energy and marine risks.

AXA Liabilities Managers CEO Sylvain Villeroy de Galhau: “This transaction, which demonstrates our great responsiveness and ability to adapt to new markets and diverse types of business, further fuels our ambition as a run off acquirer and our appetite for new deals.”

Emirates Re chairman of the board Jonathan Cimino said: “By working with a professional run off acquirer such as AXA LM, we have been able to fulfil our dual objectives of achieving a structured exit for our shareholders whilst ensuring continuity for our cedants.”

The acquisition, which will be carried out through AXA Liabilities Managers’ investment vehicle, is pending receipt of approval of the Dubai Financial Services Authority (DFSA).

AXA LM was established in 2001 to proactively manage AXA’s non life reinsurance liabilities. It is the 19th acquisition for AXA in the external market and the first with a UAE-based firm.