Arabtec employees, 52,000 of them, are insured with Dubai National Insurance and Reinsurance for another year. DNIR is listed on the Dubai stock market (DFM) but rarely trades. No other figures supplied in this news item (it reads like a press release but I didn't receive it, and can only find the KT version repeated in other sources), but surely that's a multi-million dirham deal for DNIR (and expense for Arabtec)?
If we say 500 - 1000 dhs per year average annual medical coverage (I guess Arabtec would pay more than the 300 dh government health card, but I don't see them paying much more for laborers that are on salaries of 1000 dhs per month), that's a total of 26m - 52m of revenue. DNIR average profit margin looks like it will be about 35% for 2008, so they're Net Profit out of this deal could be AED 9.1 - 18.2 million? That's a very substantial amount, given that DNIR quarterly profit is AED 8m - 12m during 2008.
Khaleej Times 13 January 2009:
Arabtec Signs Medical Insurance Deal for 52,000 Employees
DUBAI - Dubai National Insurance & Reinsurance PSC (DNIR) on Monday announced that it had renewed the medical insurance contract with Arabtec Holdings PJSC (ARTC) to cover their 52,000 employees.
The medical scheme for Dubai's leading construction group is facilitated by Musalla Net in association with Howden Insurance Brokers, said C.R. Jayakumar, General Manager, DNIR.
The signing ceremony of the medical contract held at Arabtec Corporate Office recently was signed by Farouk Sadek, Director of Arabtec LLC, Dr. Sasikumar, Director of Musalla Net, and Arvind Kashyapa, CEO of Howden Insurance Brokers LLC.
He said the medical network encompassed various clinics, hospitals and pharmacies spread over to all emirates in the UAE. "This insurance protection, unlike other traditional medical Schemes, distinctly offers value additions by providing medical care at employees' camps on a regular basis. The scheme further provides life insurance coverage for all members under the scheme. The medical plan is designed to facilitate corporate clients to contain the spiralling medical costs by opting for an alternative cost effective insurance protection," Jayakumar said. DNIR is currently extending similar medical insurance schemes to other corporate groups including 30,000 members of Habtoor Leighton, in addition to Al Habtoor Group, DEPA LLC, GTCC and with Musalla Net Managing the Medical Network facility.
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