Liva Group, a leading multi-line insurer in the GCC, has said that a potential merger between Liva Insurance Company (Liva KSA) and Malath Cooperative Insurance Company was part of a strategy to expand its footprint in Saudi Arabia.
Liva KSA, which is listed on the Saudi stock exchange and majority-owned by Liva Insurance, a subsidiary of Liva Group, provides a suite of best-in-class insurance services for customers across Saudi Arabia, with SAR522m ($139m) in gross written premium last year.
Liva KSA announced via the Tadawul stock exchange the signing of a non-binding memorandum of understanding with Malath Insurance to evaluate a potential merger between the two companies.
The potential merger reflects the importance that the Liva Group places on Saudi Arabia, the largest market in the GCC and one that is growing at a significant pace.
Mr Khalid Al Zubair, chairman of Liva Group, said, “Saudi Arabia is the largest market in the GCC with a strong momentum for growth. Expanding the Group’s footprint in the Kingdom is one of the key pillars of our strategy to accelerate growth across the Group, as we look to become the insurer of choice for customers across the GCC. Strategic partnerships such as the one we are exploring with Malath Insurance can help us achieve that ambition.”
Mr Martin Rueegg, CEO of Liva Group, said, “Liva has built a solid foundation in Saudi Arabia. However, there are significant opportunities that we are yet to unlock in this dynamic market. Through this potential merger, we would be well-positioned to expand our product offerings, capitalising on the drivers of growth in the Kingdom, including Vision 2030 and regulatory advancements.”
Both Liva KSA and Malath Insurance will carry out the necessary due diligence as they explore the proposed merger. Any transaction would be subject to the signing of a definitive agreement between Liva KSA and Malath Insurance, as well as the approval of the relevant authorities and shareholders.
Liva has established operations across GCC markets, including Oman, Saudi Arabia, the UAE, Kuwait, and Bahrain. The Group also has wholly owned subsidiaries viz, NSSPL (India) and Inayah TPA (UAE) to support its business growth.