Saudi Reinsurance Company has completed all procedures for the sale of its entire 49.9% stake in Probitas Holdings (Bermuda) to Aviva Insurance for GBP123m ($160m).
In a statement, Mr Ahmad Al-Jabr, acting CEO of Saudi Re, said, “This transaction aims to enhance the company’s competitive position and financial position, enabling it to redirect investments to develop growth opportunities in both local and international markets.”
Investment return of more than 5 times
He added, “The transaction offered attractive terms, and the proceeds from the sale will strengthen the company’s capital base and increase its solvency margin. This will create significant value for shareholders, generating a return more than five times the initial investment.”
The company announced on the Tadawul website that the deal would support its growth and financial position, having a positive impact on its financial statements in the third quarter of the 2024 financial year. It stated that the book value of the investment in the Probitas stake as of 31 March 2024 was SAR211.3m ($56.3m).
The terms of the transaction include providing Saudi Re with the opportunity to participate in reinsurance contracts with Probitas for the years 2024-2025.
Saudi Re announced the sale in March 2024.