Riyadh – Mubasher: Saudi Reinsurance Company (Saudi Re) has announced the completion of all procedures to conclude selling its entire 49.90% equity in the UK-based Probitas Holdings (Bermuda) Limited (PHBL) and its subsidiaries.
Saudi Re exited its entire stake in Probitas on 9 July 2024 with a value of GBP 123 million after final closing adjustments, according to a bourse disclosure.
The Saudi insurance company noted that the costs associated with the sale deal include administrative, legal, and consultancy.
As for the financial impact, Saudi Re noted that exiting Probitas will reflect positively on its results for the third quarter (Q3) of 2024 while supporting its growth and boosting its financial position.
Meanwhile, the terms of the transaction include providing Saudi Re with the opportunity to participate in reinsurance contracts with Probitas for 2024 and 2025. In addition, the asset book value hit SAR 211.34 million as at Q1-24.
On the other hand, the British company Aviva announced on 10 July that following the receipt of all necessary approvals, it has completed the acquisition of Probitas for a consideration of GBP 249 million.
Aviva’s takeover of Probitas was first announced for consideration of GBP 242 million on 4 March 2024, when Saudi Re unveiled signing a share purchase agreement to sell its entire stake in Probitas.
The acquisition transaction included acquiring Probitas’s fully-integrated Lloyd’s platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.
It is worth noting that Saudi Re achieved net profits after Zakat attributable to the owners worth SAR 31.79 million in Q1-24.
Earlier in July, the Saudi listed company announced entering into a binding subscription agreement with the Public Investment Fund (PIF) to increase its capital to SAR 1.15 billion.
