Can you provide us with a summary of the announcement?

OMINVEST and NLGIC are expressing their gratitude to the regulators in Oman, KSA, the UAE, and Bahrain for their support in completing the transaction. NLGIC, a subsidiary of OMINVEST, has acquired a 100% shareholding in RSA Middle East. The transaction involved purchasing around 50% shareholding from Sun Alliance Insurance Overseas LTD and exchanging the remaining shares owned by Saudi shareholders with new NLGIC shares. All necessary approvals have been obtained, and the transaction is now legally completed. NLGIC aims to expand its operations and product offerings in the GCC region, and acquiring RSA Middle East is a strategic move towards achieving that goal.

What is the significance of this transaction and its impact on both companies?

The transaction is expected to create a larger, stronger, and more competitive regional insurance player emerging from Oman. NLGIC is already the market leader in Oman and has a strong presence in the UAE, while RSA Middle East is a leading provider of property and casualty insurance in the Middle East, operating in Oman, KSA, Bahrain, and the UAE. The combined entity will have the opportunity to reach new markets, pursue growth opportunities, and expand its customer base in the region. The transaction will bring value to stakeholders and enable synergies between the companies, allowing for the provision of a wider range of insurance products and services to individual and corporate customers. It will also strengthen the solvency and regulatory standing of both companies. Overall, this transaction creates a powerful insurance player operating in multiple countries in the region, contributing to Oman’s economic development objectives through foreign direct investment.

Can you tell us about OMINVEST’s investment philosophy and how it relates to this transaction?

OMINVEST’s investment philosophy is centered around supporting and enabling portfolio companies to thrive and grow. The group has a successful track record in the insurance sector, and NLGIC, their largest insurance subsidiary, has experienced significant growth locally and regionally. OMINVEST provides capital injection, prudent oversight through its Board, and strategic guidance to its portfolio companies. In line with this philosophy, OMINVEST works closely with company boards and management teams to identify and capitalize on growth opportunities. The transaction with RSA Middle East aligns with OMINVEST’s approach of creating value for stakeholders and pursuing strategic growth for its businesses. The aim is to have a stronger and more impactful insurance business in the region, bringing long-term benefits to all parties involved.