- Abu Dhabi National Insurance Company (ADNIC) has secured a 51% majority stake in Allianz Saudi Fransi Cooperative Insurance Company, a publicly traded entity in Saudi Arabia. According to a disclosure on the Abu Dhabi Securities Exchange (ADX), ADNIC will make a cash payment of $133.1 million (AED 489 million) from its internal cash reserves. The transaction is anticipated to finalize in the upcoming quarters.
- This acquisition is expected to enhance ADNIC's competitive position within the insurance markets in the GCC, with a particular focus on Saudi Arabia. ADNIC elaborated on the rationale behind the acquisition in its statement to ADX: “The company intends to fund the acquisition through internal cash resources. To the extent that any external funding may be required at the date of completion, the company has access to sufficient funding facilities from banks to meet any requirements.”
Why it matters
For the six-month period ended 30 June 2023, ADNIC’s total insurance revenue stood at AED2.14 billion, slightly down from AED2.24 billion for the same period in 2022. Gross written premiums continued to grow to reach AED5.13 billion, up 20.1 percent.