ADNIC's Strategic Move: Acquiring Majority Stake in Allianz Saudi Fransi

Abu Dhabi National Insurance Co. (ADNIC) has made a significant move into the Saudi Arabian insurance market with the acquisition of a 51% stake in Allianz Saudi Fransi Cooperative Insurance Co.

The deal, valued at 499 million riyals ($133.1 million), was confirmed by ADNIC in a regulatory filing on Thursday (April 18).

This acquisition marks a strategic step for ADNIC, aligning with their expansion plans into Saudi Arabia.

The transaction was finalized at an average price of SAR 16.31 per share, inclusive of customary transaction expenses.

The move comes amidst a surge in mergers and acquisitions within the GCC insurance sector.

According to a recent report by Alpen Capital, a UAE-based investment banking advisory firm, the years 2021 to 2023 witnessed approximately 33 such deals.

Furthermore, the report projects a steady growth rate of 5.8% for the Saudi insurance market between 2023 and 2038.

With this acquisition, ADNIC aims to leverage the growth potential of the Saudi market and strengthen its presence in the region's insurance landscape.

Source: Brinda Darasha / Zawya