French global insurer AXA announced yesterday that it has entered into an agreement with 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 Company; and 28% of AXA Green Crescent Insurance Company. YBA Kanoo has direct and indirect ownership of 50% of AXA Gulf, and 16% of AXA Cooperative Insurance Company. 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 UAE.
As part of the transaction, Yusuf Bin Ahmed Kanoo (YBA Kanoo), one of the largest conglomerates in the Gulf Region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance Company.
Mr Khaled Saoud Al Hasan, group CEO of Gulf Insurance Group, said, “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.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by 3Q2021.
gig is a leading insurer in the Middle East and North Africa with companies in Kuwait, Jordan, Bahrain, Egypt, Turkey, Algeria, Syria, Iraq, Lebanon, Saudi Arabia, and the UAE. Its biggest shareholders are Fairfax, a financial holding company headquartered in Toronto, Canada, as well as KIPCO.
The Kanoo Group, a UAE-based diversified business conglomerate, is one of the largest independent, family-owned group of companies in the Gulf region with business activities across industries from shipping, travel, machinery, engineering, oil & gas, power, and industrial projects to exhibition services, courier Services, logistics, specialty chemicals, and other retail and commercial activities. It operates through more than 28 companies and employs more than 10,000 people across Bahrain, Oman, Qatar, Saudi Arabia and the UAE.
KIPCO is one of the biggest holding companies in the Middle East and North Africa, with consolidated assets of $33bn as of 30 September 2020. The Group has significant ownership interests in over 60 companies operating across 24 countries. The Group’s main business sectors are financial services, media, real estate, manufacturing and education. KIPCO is the biggest shareholder of gig.