Walaa Cooperative Insurance Company and Metlife AIG ANB Cooperative Insurance have created history in the Saudi insurance market by legally combining their businesses. Following regulatory and shareholder approvals, Walaa Insurance has now successfully completed the merger with Metlife AIG ANB, a first in the Saudi insurance industry.
Sulaiman Al-Kadi, chair of Walaa, said: “I must appreciate and congratulate boards and management of both companies to successfully complete this merger transaction. I would also convey my special thanks to our regulators Saudi Arabian Monetary Authority (SAMA) and Capital Markets Authority (CMA) for all their support and understanding; they literally have gone out of the way to help us in making this a success. Our financial advisers Jazira Capital have worked really hard throughout the process, I appreciate their efforts too. In short, each and every member who contributed and worked for this merger transaction deserves a round of applause.”
Johnson Varughese, CEO of Walaa, said: “We would like to place on record our appreciation to the shareholders of both Walaa and Metlife AIG ANB for approving the merger transaction with an overwhelming majority.
“We will be the best place to insure as today marks an unrivaled opportunity to accelerate our strategy, for the new era of development under Vision 2030, with new strength and dimension. The merger will increase our client base, enhance geographical locations, diversify Walaa’s portfolio of insurance products, decrease costs and expenses, and enhance negotiation capabilities with reinsurers.”
With the combination of the two insurance companies under the statutory merger, Walaa will absorb Metlife AIG ANB’s assets and liabilities. The transaction was executed through a share swap, with Metlife AIG ANB shareholders receiving 1.52 Walaa shares for each Metlife AIG ANB share.
“This is a great achievement and we have all earned it. Walaa’s reputation played a vital role in this success. Our focus now is on our customers while at the same time completing the integration process and executing our vision of being the leading insurance company in the Kingdom,” said Salah Aljaber, COO at Walaa.
This merger will also provide Walaa an opportunity to enter into the protection and savings (P&S) business. Walaa has been looking to enter into this segment for some time but was waiting to find the right strategic partner. Walaa sees Metlife AIG ANB’s previous experience within the P&S market as an advantage.
In a statement, Walaa thanked all its stakeholders and assured the policyholders of Metlife AIG ANB of uninterrupted services and that all their rights will remain protected.