Kuwait: GIG to increase revenue by $1bn following deal with AXA

Source: Middle East Insurance Review | Oct 2021

Gulf Insurance Group (GIG) said its acquisition of the entire shares of AXA Gulf represents part of the group’s strategy to increase revenues and expand in the Arab region.

GIG CEO Khaled Saoud Al Hasan said before the acquisition, the group was present in 11 countries and generated total revenue of $1.5bn in 2020.

The acquisition of AXA Gulf will raise the group’s annual revenue to $2.5bn, making it the largest player in the Arab insurance market, he said. The transaction substantially expands GIG’s insurance business portfolio, bringing the group into two new markets in Oman and Qatar, and reinforces its operations in Bahrain, Saudi Arabia and the UAE.

Mr Al Hasan added that the regional market outside Kuwait represents 50% of the group’s total revenues.

In early September, GIG completed its acquisition of AXA’s shareholding in AXA Gulf (Bahrain, UAE, Oman and Qatar) and AXA Cooperative Insurance (Saudi Arabia). The acquisition of AXA’s stake in AXA Green Crescent Insurance in the UAE has been approved by all necessary regulatory authorities, including by the UAE’s central bank and is in the final stage of the completion process.

With this transaction, GIG also acquired Yousuf Bin Ahmed Kanoo Group of Companies’ shareholding in AXA Gulf.

The acquisition agreement was signed in late November 2020 with AXA. M

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