Insurance firms mergers affirm success of SAMA’s plans, says governor

Fahad Al-Mubarak, SAMA governor

The recent mergers between insurance firms are positive indications that Saudi Central Bank’s (SAMA) plans for the sector are moving in the right direction, Fahad Al-Mubarak, SAMA governor, said during the honoring of Aljazira Takaful Taawuni Co. and Solidarity Saudi Takaful Co. (Solidarity) following their merger.

SAMA will continue to encourage insurance companies to merge and acquire, in order to achieve the Vision 2030 goals and its programs, the most important of which is the financial sector development program (FSDP), Al-Mubarak affirmed.

The governor urged insurance companies to merge and acquire to benefit from the positive economic effects, the most important of which lies in enhancing the sector’s competitive capabilities, the ability to create innovative insurance products and services, improving operational efficiency and reducing costs, and attracting and maintaining qualified human competencies.

In addition, there are other positive effects that will be reflected on the Kingdom's economy, the financial sector, the insurance sector (the insured, and the beneficiaries of the insurance coverage).

According to data compiled by Argaam, the sector recently witnessed a number of agreements and mergers, leading to a merger between Walaa Cooperative Insurance Co. and Metlife AIG ANB Cooperative Insurance Co., as well as a merger between Al-Ahlia Insurance and Gulf Union National, and between Aljazira Takaful and Solidarity Takaful.

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