Probitas has signed a memorandum of understanding with Saudi Re to acquire a 49.9% of the former’s holding company Probitas Holding (Bermuda) Ltd (PHBL). An exclusivity agreement was also signed, lasting until July 20, 2017, to allow both parties to finalise the deal.
The transaction is subject to approval by Lloyd’s and the Saudi Arabian Monetary Authority (SAMA), as well as dependent on the completion of PHBL’s purchase of all of all Istmo Re Group’s interests in Probitas.
After the transaction, PHBL will own the entirety of Probitas Corporate Capital Limited, Probitas 1492 Services Limited, and Probitas Holdings (UK) Limited. Probitas Syndicate 1492 will continue to underwrite capital at Lloyd’s of around US$135 million for 2017, with no contribution from Istmo Re.
Ash Bathia, CEO of Probitas, commented: “The substantial involvement of Saudi Re in the Probitas syndicate is consistent with our strategy of building our business in growth markets for Lloyd's, including Middle East, Latin America and Asia.”
Saudi Re CEO Fahad Al Hesni added: “Saudi Re aims to expand its business and investments in the global insurance and reinsurance market particularly UK’s Lloyds market.”
The firms have already began the due diligence process to examine the financial, legal, regulatory, and actuarial aspects of the deal.
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