Saudi Re completes Probitas Holding acquisition deal
Source: Middle East Insurance Review | Nov 2017
Saudi Arabia M&A Reinsurance
Saudi Cooperative Reinsurance Co (Saudi Re) has completed the acquisition of 49.9% of the Bermuda-based Probitas Holdings (Bermuda) Limited (PHBL), according to a statement on Tadawul issued by the reinsurer.
The move is a major milestone and in line with Saudi Re’s expansion and diversification strategies, said Mr Fahad Al-Hesni, Managing Director and CEO of the reinsurer.
Saudi Re, the sole home-grown reinsurer in the Kingdom, announced in July that it had inked an agreement to acquire the stake in PHBL for a total of US$25 million. PHBL invests in the insurance and reinsurance business in the Lloyd’s insurance market.
“Lloyds is one of the largest and most important insurance and reinsurance markets worldwide with premiums reaching $40 billion. It also has massive dealings and operations with important markets in the world, therefore attracting companies to seek a presence in this market,” said Mr Al-Hesni, commenting on the importance of the deal. “To us at Saudi Re, this move is part of our strategy to achieve geographical expansion and further diversify our risk portfolio.”
He added that the acquisition will strengthen the company’s presence in the international market, which consequently will diversify its sources of business and growth opportunities besides supporting its investment returns.
“Moreover, building strategic relationships in these pioneering markets offers valuable opportunities to develop the company’s technical capabilities through being present in this specialty market,” he said.
Saudi Re is keeping the door open for further strategic initiatives such as new acquisitions in the regional and international arena, said Mr Al-Hesni. “Saudi Re enjoys a strong financial position, and whenever there are opportunities that are in line with the company’s strategy, we will look into and analyse them. In general, the Saudi market remains our main focus, but geographical diversification remains a vital element for reinsurers to succeed, create balance in their reinsurance business portfolio and improve their performances.” M