Royal Sun Alliance Insurance (RSA) Middle East is set to be fully acquired by Oman International Development and Investment Company’s (Ominvest) subsidiary firm, Gulf insurer National Life and General Insurance Company (NLGIC). In a disclosure, NLGIC announced that it would be acquiring RSA Middle East from Sun Alliance Insurance Overseas (SAIO), RSA Middle East’s fully owned subsidiary. NLGIC will exchange the remaining Saudi shares for new shares that it will issue in the future, making the Saudi shareholders collectively the second-largest Shareholders in NLGIC after Ominvest.
Khalid Muhammad Al Zubair, Chairman of Ominvest and NLGIC, described Ominvest’s philosophy as, “Our investment philosophy at Ominvest has always been to support and enable our portfolio companies to thrive and grow. Ominvest has a strong track record of building businesses in the insurance sector. NLGIC’s success is attributable to the significant capital injection from Ominvest, prudent oversight by its Board, and smart business strategies implemented by the management. We endeavor to identify, screen, and capitalize on growth opportunities that would create value for all stakeholders.”
“This transaction will bring foreign direct investment to Oman-based NLGIC, and we look forward to a brighter and stronger future for our insurance business across the region,” he added.
The transaction will help NLGIC grow by optimizing operations in the Sultanate of Oman and the United Arab Emirates while gaining access to a larger market in Saudi Arabia, thanks to RSA Middle East’s strong customer base and solid business track record in the region.
RSA Middle East Chairman Adnan Bogary said on behalf of the shareholders, “This strategic agreement will foster a strong partnership between NLGIC and our RSA Middle East shareholders and pave the way for developing a diversified portfolio and regional portfolio scale-up. We look forward to taking this business to new heights with our new partners.”
The agreement will assist both companies in reaching new markets, pursuing top-line growth opportunities, reducing costs, cross-selling products, implementing cutting-edge technologies and innovations, and complementing each other’s regional business offerings, all of which will add tremendous value to customers and fuel business growth. Following the necessary clearances, the transaction is expected to be finalized quickly.