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Jul 2022

GCC: Oman's NLGIC to enlarge regional footprint

Source: Middle East Insurance Review | May 2022

Oman International Development and Investment Company (OMINVEST) said its subsidiary National Life & General Insurance Company (NLGIC) has entered into agreements to acquire 100% of UAE-based RSA Middle East.
 
NLGIC will execute the transaction in two parts. The first deal involves NGLIC purchasing from Sun Alliance Insurance Overseas, a wholly owned subsidiary of Royal & Sun Alliance Insurance, the latter’s entire stake of 50.00002% in RSA Middle East.
 
The second agreement involves the swapping of the remaining RSA Middle East shares, owned by reputable Saudi shareholders, with new shares in NLGIC, making the Saudi shareholders the second-largest shareholders in NLGIC after OMINVEST. The transactions are subject to approval from the regulators and NGLIC shareholders.
 
The agreements are based on a deep understanding of RSA’s business legacy and capabilities, and on efficient utilisation of NLGIC’s knowhow and financial position, aiming to transform the combined entity into a larger, stronger and more competitive regional insurance player.
 
Given RSA Middle East’s strong customer base and solid business track record in the region, the transaction will help NLGIC grow its insurance business by optimising operations in Oman and the UAE while gaining access to a larger market in Saudi Arabia. The combined business of NLGIC and RSA Middle East will create incremental value for all stakeholders. In addition, it will create a full-fledge well-diversified insurance player, offering a broad array of insurance products and services to individual and corporate customers in Bahrain, Kuwait, Oman, Saudi Arabia and the UAE.
 
RSA Middle East chairman Adnan Bogary said, “Health insurance has been considered a major growth opportunity for RSA Middle East, as it is the fastest-growing product line and by far the largest when compared to non-life and life insurance. To tap into that, we needed a partner with experience in the health space and deep knowledge of the Middle East region.
 
“This strategic agreement will foster strong partnership between NLGIC and our RSA Middle East shareholders and will pave the way for developing a diversified portfolio, as well as regional scale-up.” M 
 

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