Ominvest unit in deal to acquire RSA Middle East
COMMERCIAL NEWS
Oman International Development and Investment Company (Ominvest) said one of its key subsidiaries, National Life & General Insurance Company (NLGIC) has entered a strategic transaction to acquire 100% shareholding in Royal Sun Alliance (RSA) Middle East, a leading provider of property and casualty insurance in the region.
One of the largest listed investment companies in the region, Ominvest pointed out that the acquisition move comes in line with the common interests of both firms to further broaden and strengthen its regional insurance business.
Ominvest said the transaction will be executed by NLGIC in two parts: (i) purchasing 50.00002% shareholding from Sun Alliance Insurance Overseas, a fully-owned entity of Royal & Sun Alliance Insurance and (ii) exchanging the remaining shares of RSA Middle East, owned by reputable Saudi shareholders, with new issued NLGIC’s shares, thus making them collectively the second largest shareholders in NLGIC.
The transaction is subject to approvals from the respective regulators and NLGIC’s shareholders, it stated.
According to Ominvest, the agreements have been based on a deep understanding of RSA’s business legacy and capabilities, and on efficient utilization of NLGIC’s knowhow and financial position, aiming to transform the combined entity into a larger, stronger, and more competitive regional insurance player emerging from the Sultanate of Oman.
Khalid Muhammad AlZubair, Chairman of Ominvest and NLGIC, said: "Our investment philosophy at Ominvest has always been to support and enable our portfolio companies to thrive and grow. We have a strong track record of building businesses in the insurance sector. Our largest insurance subsidiary, NLGIC, has remarkably grown locally and regionally."
"NLGIC’s success is attributable to the significant capital injection from Ominvest, prudent oversight by its Board, and smart business strategies implemented by the management. We endeavor to work closely with our companies’ boards and management teams to identify, screen, and capitalize on growth opportunities," he noted.
"We provide strategic direction and help our companies draw ultimate roadmaps that would create value for all stakeholders and with this transaction, we look forward to a brighter and stronger future for our insurance business," remarked Al Zubair.
"Moreover, the transaction will bring foreign direct investment to Oman-based NLGIC," he added.
RSA Middle East Chairman Adnan Bogary said: "Health insurance has been considered a major growth opportunity for RSA Middle East, as it is the fastest-growing product line and by far the largest when compared to non-life and life insurance."
"To tap into that, we needed a partner with experience in the health space and deep knowledge of the Middle East region,” he stated.
“This strategic agreement will foster strong partnership between NLGIC and our RSA Middle East shareholders and will pave the way for developing a diversified portfolio, as well as regional scale-up. We look forward to taking this business to new heights with our new partners,” he added.-TradeArabia News Service
