Gulf Insurance Group (GIG) has completed the acquisition of global insurer AXA’s holdings in the Gulf region.
The transaction involves AXA’s 50% stake in AXA Gulf (which operates in Bahrain, the UAE, Oman and Qatar) and a 34% stake in AXA Cooperative Insurance Company (Saudi Arabia). The deal was valued at US$264 million (SG$355 million).
AXA Gulf will be rebranded as GIG Gulf and will hold 50% ownership in the Saudi Arabian entity. As part of the transaction, GIG also acquired Yousuf Bin Ahmed Kanoo Group of Companies’ (YBA Kanoo) shareholding in AXA Gulf.
The purchase significantly expands GIG’s insurance portfolio, giving it access to two new markets in Oman and Qatar and reinforcing its operations in Bahrain, the UAE and Saudi Arabia.
“It is with absolute pleasure that we announce the completion of the transaction,” said Khaled Saoud Al Hasan, chief executive of GIG. “This is a remarkable milestone in our expansion journey. The exponential insurance business growth and the quality of services will be further enhanced through our enlarged geographical presence (13 markets in the region) to better serve our customers while leveraging the existing international network and ecosystem of AXA Gulf.”
The sale of AXA’s 28% shareholding in AXA Green Crescent Insurance Company, which operates in the UAE, has received the required regulatory approvals and is expected to close shortly. It represents a cash consideration of US$5 million.
“Thanks to the rigorous but efficient collaboration with local regulators in our five respective markets, we have been able to retain the integrity of our existing operations,” said Paul Adamson, CEO of AXA Gulf. “Our partners, brokers and customers have shown trust and patience. As we enter into the final stage of the transition, we are looking forward to continuing to deliver on our promises with the support of our new shareholders and the guaranteed continuity of our operations and teams, which will ensure that our customers are not impacted by this transaction.”