Gulf Insurance Group (GIG), a leading insurance group in the Middle East and North Africa, has announced that Fairfax Financial Holdings Limited is set to acquire its entire 46.3 percent stake in Kuwait Projects Company (KIPCO) for $860 million (KD263.7 million).
This will make Fairfax the largest shareholder of the company with an aggregate ownership of 90.01 percent.
Fairfax is a holding company, which through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.
According to the company, this move further benefits GIG in many ways with Fairfax’s extensive global insurance experience in over 40 countries.
Khalid Al-Hasan CEO – GIG Group
“Since 1997, as a strategic investor, KIPCO’s role has been predominant and we wholeheartedly recognize their extensive and impeccable experience helping GIG to emerge as one of the top insurance players in the MENA region. The exponential growth the Group delivers is a great testament to the strategic alignments and collaborations. The total business portfolio has largely been expanded since FAIRFAX’s investment in GIG during 2010, displaying a distinguished performance at all levels of our operation. We remain focused and continue our business as usual to deliver unprecedented growth while benefitting from Fairfax’s global expertise and international exposure.”
On the key deal, GIG Chairman Mr. Farqad Abdullah Al-Sane said that “this marks yet another development in the group’s way forward. The transformation and growth of GIG has been significant with the unmatched support of our major shareholders – KIPCO from 1997 and Fairfax from 2010.”
“This transaction shows Fairfax’s long-term commitment to the Group that makes GIG further stronger and paves the way for a sustainable future enhancing its scale and impact. We are very excited and looking forward to the new opportunities we will be experiencing on this journey,” Mr. Al-Sane added.
The transaction is subject to customary closing conditions, including the receipt of concerned regulatory approvals, and is expected to finalize within this year, as per the company.
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