Egypt: Gulf Insurance Group to acquire AIG Egypt
Source: Middle East Insurance Review | May 2023
Kuwait-headquartered Gulf Insurance Company has announced that its subsidiary GIG Egypt has signed an agreement to acquire AIG Egypt for EGP196.97m ($6.4m). The stake to be acquired is 95.02%.
Egypt’s Financial Regulatory Authority (FRA) has given the green light for the acquisition of up to 1.2m AIG Egypt shares which represent 100% of the issued shares of the latter.
The FRA said in a statement that the deal was approved at a cash price of EGP164.14595 per share, with the acquisition of a minimum of 75% of the shares of AIG Egypt.
On completion of the acquisition, Gulf Insurance Company intends to merge AIG Egypt with GIG Egypt, which is 99% owned by the Gulf Insurance Group.
The issued and paid-up capital of AIG Egypt is about EGP60m comprising 1.2m shares with a nominal value of EGP50 per share. AIG Egypt holds a 1% share of Egypt’s non-life domestic market by GWP.
GIG Egypt is the third-largest non-life insurer in its domestic Egypt market, measured by GWP, with a non-life market share of approximately 7%, according to AM Best in a report from October 2022. The insurer has a paid-up capital of EGP380.953m.
In August 2022, it was announced that GIG-Egypt would acquire AIG Egypt. M