National Life & General Insurance Company (NLGIC) has acquired RSA Middle East, upon completion of sale and purchase and share swap agreements signed in April.
NLGIC is the insurance subsidiary of Oman International Development and Investment Company SAOG (OMINVEST). It is headquartered in Oman with branches in Dubai, Abu Dhabi, and Kuwait.
Following the transaction, which has received regulatory and shareholder approvals, RSA Middle East is now a wholly owned subsidiary of NLGIC, covering its operations in the GCC. This includes the markets of the Sultanate of Oman, Kingdom of Saudi Arabia, the United Arab Emirates, and Kingdom of Bahrain.
The transaction was executed in two parts. The first was purchasing 50.00002% of shares in RSA Middle East from Sun Alliance Insurance Overseas, a fully owned entity of Royal Sun Alliance Insurance Limited. This was followed by exchanging the remaining shares of RSA Middle East, owned by Saudi shareholders, with newly issued NLGIC shares, giving the Saudi shareholders collectively the second-largest stake in NLGIC after OMINVEST.
“As part of NLGIC’s growth strategy, this transaction will not only help the company expand its customer reach in the region but will also bring together potential synergies between both companies in terms of resources and technologies to provide a wider range of insurance products and services to both individual and corporate customers, thus creating a well-diversified insurance player in the region,” said Khalid Muhammad AlZubair, chairman of OMINVEST and NLGIC.
RSA has been in the Middle East region for more than 60 years. It provides motor, property, medical, SME and other property and casualty insurance products, serving both commercial and retail clients.
“The successful completion of this transaction brings NLGIC and RSA Middle East closer to forming a robust partnership that will help us expand our portfolio and position ourselves as a leading multi-line insurer in the area, poised for future growth,” said Adnan Bogary, chairman of RSA Middle East.
