Gulf Union-Al Ahlia merger will create strong entity, says Al Borno

Gulf Union Cooperative Insurance Co.’s potential merger with Al Ahlia for Cooperative Insurance will create a strong entity that will increase benefits for shareholders, policyholders and employees of both companies, chief executive, Munir Al Borno, told Argaam in a telephone interview phone on Tuesday.

The potential merger will help both insurers reduce costs and focus their efforts.

“Talks are still in early stages, and other issues about general assemblies, shareholders’ equity and both firms’ valuations will be discussed later on,” Al Borno said.

The potential move has been encouraged by government agencies, including the Saudi Arabian Monetary Agency (SAMA), the kingdom's central bank and insurance market regulator, he added.  

Early in March, both the Tadawul-listed insurers decided to start initial talks with for a potential merger, Argaam reported.

Gulf Union has appointed Saudi Kuwait Finance House as financial advisor for the merger.