Saudi Arabia-based leading insurance firm Amana Cooperative Insurance Company has signed a non-binding memorandum of understanding (MoU) with the general insurance company Allied Cooperative Insurance Group (ACIG) in order to evaluate a potential merger between the two companies.
The company said in a statement that “the two insurers will conduct technical, financial, legal, and actuarial due diligence and engage in non-binding discussions on the terms and conditions of the proposed merger.”
The two companies have initially agreed that the methodology used for valuation will be based on equity book value (after any mutually agreed due diligence adjustments).
According to the company statement, “The MoU would expire if the two firms sign the merger agreement or after 12 months from the MoU signing date.”
The proposed merger is subject to the completion of due diligence to the parties’ satisfaction, agreement on the final terms and conditions of the merger agreement, and the approval of the competent authorities and the general assemblies of ACIG and Amana Cooperative.
Furthermore, Amana Cooperative intends to continue to conduct business as usual until the completion of the proposed merger, the company added.
Allied Cooperative Insurance Group (ACIG)
Saudi Arabia-based Allied Cooperative Insurance Group (ACIG) is a general insurance company. It offers insurance products for motor, medical, travel, personal accident, home, workmen’s compensation, public liability, marine, and medical malpractice.
The company also offers a range of engineering insurance products, which includes contractors’ all risks insurance, erection all risks insurance, machinery breakdown insurance, and electronic equipment insurance.