National Life & General Insurance Company (NLGIC), a subsidiary of Oman International Development and Investment Company (OMINVEST) has entered into a strategic transaction to acquire 100 percent shareholding in UAE-based Royal Sun Alliance (RSA) Middle East.
The transaction will be split into two halves by NLGIC. The first part involves purchasing a 50.00002 percent stake in RSA Middle East from Sun Alliance Insurance Overseas, a wholly-owned subsidiary of Royal & Sun Alliance Insurance Limited.
The second part will include exchanging the remaining RSA Middle East shares, owned by reputable Saudi shareholders, with newly issued NLGIC shares, making Saudi shareholders the second-largest shareholders in NLGIC after OMINVEST.
The agreements have been based on a deep understanding of RSA’s business legacy and capabilities, and on the efficient utilization of NLGIC’s know-how and financial position, aiming to transform the combined entity into a larger, stronger, and more competitive regional insurance player emerging from the Sultanate of Oman.
“Our investment philosophy at OMINVEST has always been to support and enable our portfolio companies to thrive and grow. OMINVEST has a strong track record of building businesses in the insurance sector. Our largest insurance subsidiary, NLGIC, has remarkably grown locally and regionally. NLGIC’s success is attributable to the significant capital injection from OMINVEST, prudent oversight by its Board, and smart business strategies implemented by the management. We endeavor to work closely with our companies’ boards and management teams to identify, screen, and capitalize on growth opportunities.”
Mr. Adnan Bogary, Chairman of RSA Middle East said that “Health insurance has been considered a major growth opportunity for RSA Middle East, as it is the fastest-growing product line and by far the largest when compared to non-life and life insurance. This strategic agreement will foster a strong partnership between NLGIC and our RSA Middle East shareholders and will pave the way for developing a diversified portfolio, as well as a regional scale-up. We look forward to taking this business to new heights with our new partners.”
The combined business of NLGIC and RSA Middle East will create incremental value for all stakeholders. In addition, it will create a full-fledge well-diversified insurance player, offering a broad array of insurance products and services to individual and corporate customers in Oman, KSA, UAE, Kuwait, and Bahrain.
The agreement will help both entities to reach new markets, seek top-line growth opportunities, rationalize costs, cross-sell products, implement top-notch technologies and innovations, and complement each other’s business offerings in the region, which will add tremendous value to the customers and fuel business growth.