MetLife AIG ANB Cooperative Insurance has signed a memorandum of understanding with Walaa Cooperative Insurance for a possible merger.
Both companies will conduct due diligence to review the technical, financial and legal aspects. It is only after such reviews that discussions could begin on the terms and conditions of the merger.
Walaa Cooperative Insurance is, according to the premiums' volume, the sixth largest company on the Saudi insurance market. In 2018, it achieved a turnover of 1 105 million SAR million (294 million USD) and a net profit of 114.3 million SAR (30.4 million USD).
For its part, MetLife AIG ANB was ranked 28th in the 2018 rankings. Its turnover amounted to 168.8 million SAR only (44.9 million USD). The company reported a net loss of 22.3 million SAR (-5.9 million USD).
Consolidation transactions are encouraged by the supervisory authorities who are considering the increase in the minimum capital of the Saudi insurance companies [4]. By January 1, 2019, the saudi market counts 32 insurers.
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