Gulf Insurance Group (GIG) will acquire French insurer AXA Group’s operations in the Gulf region and the share of Yusuf Bin Ahmed Kanoo (YBA Kanoo) in AXA Gulf for $474.75 million.
Under the agreement, Kuwait’s Gulf Insurance will acquire 100% of AXA Gulf in the UAE, Bahrain, Oman, and Qatar, and 18% of AXA Cooperative Insurance Company in Saudi Arabia, and 28.05% of AXA Green Crescent Insurance Company in the UAE, according to the company’s disclosure to Boursa Kuwait on Monday.
AXA Gulf owns 32% of the issued capital of AXA Cooperative Insurance Company; hence, Gulf Insurance will hold 50% of the Saudi-based insurance company.
To complete the transaction, Gulf Insurance is completing the necessary measures to receive the approval of the relevant regulatory authorities in the UAE, Bahrain, Oman, Qatar, and Saudi Arabia.
The financial impact of the transaction will be registered after adding the financial statements of the acquired companies to the group’s financials upon obtaining the regulatory approvals.
It is noteworthy to mention that in the first nine months of 2020, Gulf Insurance’s net profits rose by 22.4% to KWD 13.1 million, compared to KWD 10.7 million in the same period of 2019.
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