Saudi Arabia: Malath and ACIG extend agreement to study merger
Source: Middle East Insurance Review | Apr 2018
Malath Cooperative Insurance and Allied Cooperative Insurance Group (ACIG) have extended their agreement to study the feasibility of a potential merger for six months starting 7 March 2018, reported Argaam citing a statement from Malath.
The move comes as the two Saudi insurers have yet to sign a MoU regarding the merger. Both Malath and ACIG started initial talks to explore the merger one year ago and agreed to carry out the related technical, financial, and legal studies.
According to market reports, some smaller Saudi insurers have suffered the erosion of 50% or more of their capital despite the Kingdom’s insurance market being one of the largest in the Gulf region. M