Riyadh – Mubasher: Liva Group announced a potential merger between Liva Insurance Company (Liva KSA) and Malath Cooperative Insurance Company (Malath Insurance)
The GCC's leading multi-line insurer highlighted that the transaction aligns with its strategy to expand its footprint in Saudi Arabia, according to a press release.
Tadawul-listed Liva provides a wide range of enhanced insurance services for customers across Saudi Arabia, with SAR 522 million ($139 million) in gross written premiums last year.
Liva KSA inked a non-binding memorandum of understanding (MoU) with Malath Insurance, on 21 August 2024, to evaluate the potential merger between the two companies.
The agreement will terminate after 12 months or at the date of the execution of a merger agreement, whichever comes first.
Khalid Al Zubair, Chairman of Liva Group, said: “Expanding the group’s footprint in the Kingdom is one of the key pillars of our strategy to accelerate growth across the group, as we look to become the insurer of choice for customers across the GCC.”
Martin Rueegg, CEO of Liva Group, commented: “Through this potential merger, we would be well positioned to expand our product offerings, capitalising on the drivers of growth in the Kingdom, including Vision 2030 and regulatory advancements.”
“We believe this strategic move would not only strengthen our market position but also create value for all stakeholders as we continue to deliver innovative solutions that meet the evolving needs of businesses and communities,” Rueegg added.
Meanwhile, Liva KSA and Malath Insurance will carry out all necessary due diligence as they explore a statutory merger, pursuant to the provisions of the Companies Law and Merger and Acquisition Regulations of the Kingdom.
Malath Insurance recently announced its financial results for the first half (H1) of 2024, achieving net profits after Zakat attributable to the owners valued at SAR 11.59 million.
