Abu Dhabi National Insurance Co. buys 51% in Allianz Saudi Fransi Cooperative Insurance for SR499m
ADNIC completes SR499m deal for stake in Allianz Saudi Fransi Cooperative Insurance
Dubai: The Abu Dhabi National Insurance Co. has completed its buy of a 51 per cent stake in Allianz Saudi Fransi Cooperative Insurance Co., with the transaction value being SR499 million. This works out to around SR16.30 a share.
It was last year that UAE’s biggest insurer ADNIC announced plans for a move of its reach into Saudi Arabia, a market where the financial services sector holds the promise of higher returns for new entrants.
In a statement, ADNIC said: “The transaction fits fundamentally within the core of the company’s strategic pillars, as it will allow to further extends its presence into the Saudi Arabian market.”
Also, it will set up ‘operating model efficiencies’ between ADNIC and Allianz Saudi Fransi Cooperative Insurance. (The latter is listed on Saudi Tadawul.)
The SR499 million deal was funded through internal resources, ADNIC added.
"The transaction is expected to strengthen the company’s competitive position in the GCC insurance markets, particularly in Saudi Arabia, to enhance its financial performance and be value accretive to its shareholders," the UAE insurer added.
According to Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, "We see Saudia Arabia as a high-potential market which perfectly aligns with our overall growth strategy, and we are looking forward to unlocking new possibilities for growth and success.”
In 2023, ADNIC recorded 'one of the highest profits in its history' at Dh401.2 million, a 12.18 per cent increase over the same period in 2022.
"Looking ahead, this acquisition places us in a strong position to deliver industry-leading products across all major insurance lines," said Charalampos Mylonas, CEO of ADNIC.