Middle East: Gulf Insurance Group to acquire AXA's Gulf operations for $269m
Source: Middle East Insurance Review | Jan 2021
French global insurer AXA has entered into an agreement with Kuwait’s Gulf Insurance Group (gig) to sell its insurance operations in the Gulf region, which includes its shareholding in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company.
Under the terms of the agreement, AXA will sell its ownership in its operations in the Gulf region for a total cash consideration of $269m.
AXA has direct and indirect ownership of 50% of AXA Gulf; 34% of AXA Cooperative Insurance; and 28% of AXA Green Crescent Insurance. Yusuf Bin Ahmed Kanoo (YBA Kanoo) has direct and indirect ownership of 50% of AXA Gulf, and 16% of AXA Cooperative Insurance. AXA Cooperative Insurance is listed on the Tadawul stock exchange in Saudi Arabia, and AXA Green Crescent Insurance on the Abu Dhabi Securities Exchange in the UAE.
As part of the transaction, YBA Kanoo, one of the largest conglomerates in the Gulf region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance.
“AXA in the Gulf region is the largest international composite insurer across five markets. There are synergies and complementarity in our respective footprints and a clear ambition to become the largest regional player in the GCC. We see huge growth potential in this region, both due to the local market opportunities and the strong expertise, technical excellence, and diversity of the human capital that comes with a player such as AXA,” said gig group CEO Khaled Saoud Al Hasan.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by 3Q2021. M