National Takaful Company (Watania) purchased a 4.9 percent stake in Dar Al Takaful, the company said in a statement.

The stake amounts to 5.88 million dirhams ($1.6 million), the Abu Dhabi-listed Watania said.

The Islamic insurance company added that the acquisition is expected to generate investment income by way of capital appreciation and dividends in the future. The financial impact will appear in the June 30, 2020 financial period.

Dar Al Takaful is an Islamic insurance company listed on the Dubai Financial Market (DFM). Watania posted a net profit of 13.3 million dirhams for the year 2019, compared to 12.3 million dirhams in 2018.