The Saudi insurance industry marks a significant chapter as Walaa Cooperative Insurance successfully concludes the first merger and acquisition in the sector with MetLife, American International Group, and Arab National Bank Cooperative Insurance. Following regulatory and shareholder approvals, this move represents a notable development in the local market.
Chairman Suleiman Al-Qadi of Walaa Insurance expressed his heartfelt congratulations to both companies’ boards for the successful completion of the merger. He extended his profound gratitude towards the Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority for their support in achieving this milestone. Al-Qadi also commended the financial advisors from AlJazira Capital for their diligence and hard work throughout the merger process.
Walaa’s CEO, Johnson Varghese, shared his appreciation for the shareholders of both Walaa and MetLife, who overwhelmingly approved the merger agreement. Varghese highlighted the merger’s strategic benefits, stating that Walaa Insurance is poised to become the preferred insurance choice in Saudi Arabia. This union is set to accelerate their strategy, adding new dimensions and strengths to keep pace with a new era and a promising future of development in line with the country’s transformative ‘Vision 2030’. The merger is expected to expand the customer base, enhance geographical coverage, diversify Walaa’s insurance product portfolio, reduce costs and expenses, and strengthen negotiating capacities with reinsurance companies.
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The transaction was executed through a share swap, with shareholders of MetLife, American International Group, and Arab National Bank Cooperative Insurance receiving 0.65 shares in Walaa Insurance for each share held in their respective companies.
