An official at the Saudi Arabian Monetary Agency (SAMA) expected that the insurance sector in the Saudi market would witness the signing of agreements to discuss the feasibility of a number of mergers in the near future.
According to ArabiaNet, Abdullah Al-Tuwaijri, General Manager of Insurance Supervision in Sama said that the merger of Walaa Cooperative Insurance and MetLife, the American International Group and the Arab National Bank for Cooperative Insurance that took place at the beginning of this month, in addition to the initial memoranda of understanding that were announced recently to discuss the feasibility of three mergers In the sector, it marks the beginning of the results of the institution's pursuit of its goals towards the insurance sector.
He pointed out that this merger will benefit the two companies through reducing costs, improving efficiency, raising market share, strengthening financial solvency, and attracting and maintaining qualified human competencies, according to the Saudi Economic Newspaper.
Al-Tuwaijri pointed out that the recent merger will increase the sector’s contribution to the Kingdom’s GDP and enhance competition and innovation in it.
He stated that Sama urged the sector and encouraged it to integrate in order to find large and strong insurance entities that enjoy high financial strength competing in innovation and investment and developing human resources and enhancing document holders protection and providing quality and distinguished services to insurance clients and beneficiaries of it and provide products needed by the economy and the sector and customers.
Walaa Insurance Company announced the implementation of the decision to merge MetLife AIG Arab Company in Walaa Insurance Company and transfer all the assets of MetLife AIG Arab Company and its obligations to Walaa Insurance Company merger deal, in exchange for Walaa Insurance Company issuance of 11,839,706 ordinary shares with a nominal value of ten Riyals per share.
The new shares are registered in the interest of shareholders in MetLife AIG Arab Company, by increasing the paid-up capital of Walaa Insurance Company paid from 528 million riyals to 646.3 million riyals and increasing the number of its shares from 52.8 million shares to 64.639.706 shares fully paid.
