Dubai: The Omani insurer Liva Group confirmed a potential merger could be on the cards between its Saudi based Liva Insurance Company and the Malath Cooperative Insurance Company to 'expand its footprint' in the Kingdom.
Liva KSA, listed on the Saudi stock exchange and majority owned by Liva Insurance BSC, had SR522 million ($139 million) in gross written premium last year.
It announced on Saudi Tadawul of a non-binding MoU with Malath Insurance to evaluate a potential merger.
We look to become the insurer of choice for customers across the GCC. Strategic partnerships such as the one we are exploring with Malath Insurance can help us achieve that ambition
Liva Group, through subsidiaries such as Liva KSA, operates across the GCC, and the 'potential merger reflects the importance that the Group places on Saudi Arabia, the largest market in the GCC and one that is growing at a significant pace'.
Khalid Al Zubair, Chairman of Liva Group, said: “Expanding the Group’s footprint in the Kingdom is one of the key pillars of our strategy to accelerate growth across the Group, as we look to become the insurer of choice for customers across the GCC. Strategic partnerships such as the one we are exploring with Malath Insurance can help us achieve that ambition.”
Liva KSA and Malath Insurance will carry out due diligence as they seek a merger, 'pursuant to the provisions of the Companies Law and Merger and Acquisition Regulations of Saudi Arabia'.
"Any transaction would be subject to the signing of a definitive agreement between Liva KSA and Malath Insurance, as well as the approval of the relevant authorities and shareholders," said the statement.
In fact, Liva Group itself emerged from quite an ambitious merger play between National Life & General Insurance and RSA M.E.
Through this potential merger, we would be well positioned to expand our product offerings, capitalising on the drivers of growth in the Kingdom, including Vision 2030 and regulatory advancements
"Liva has built a solid foundation in Saudi Arabia - however, there are significant opportunities that we are yet to unlock in this dynamic market," said Martin Rueegg, CEO of Liva Group.
