Saudi Re expands to Lloyd's mart through acquisition
Source: Middle East Insurance Review | Sep 2017
Saudi Re has signed a Memorandum of Understanding with Probitas Holdings (Bermuda) Limited (PHBL) to purchase 49.9% of the shares of the latter.
PHBL invests in insurance and reinsurance business in the Lloyd’s market.
The MoU, signed on 13 July 2017 and announced on Tadawul, reflects the parties’ agreement over the initial valuation of the deal for a 49.9% stake at US$25 million, and involves three subsidiaries of PHBL:
- Probitas Holdings (UK);
- Probitas Corporate Capital, a Lloyd’s corporate member which currently owns a large percentage of the capacity rights of Syndicate 1492; and
- Probitas 1492 Services, the services company which has built a highly experienced underwriting, marketing, actuarial and administration team to underwrite business on behalf of Syndicate 1492.
The transaction is subject to approval by both Lloyd’s and SAMA.
Mr Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said: “We are excited about this step which we believe will provide Saudi Re with opportunities to expand its business and investments in the global insurance and reinsurance market, particularly the Lloyd’s market in the UK. This was identified as part of Saudi Re strategy to diversify its operations.” M