The Mediterranean and Gulf Insurance and Reinsurance Co.’s (MEDGULF) CEO Umar Al Mahmoud said that the process of the merger with Buruj Cooperative Insurance Co. is progressing well.
In an interview with Argaam on the sidelines of the Financial Academy Forum, he noted that there is a great cooperation between the departments of both companies during the ongoing full financial examination, along with their commitment to the previously set plan.
For More Mergers and Acquisitions
Al Mahmoud expected the company’s performance to improve during the third quarter of this year, looking forward to offsetting the accumulated losses within a short period.
He explained that Moody’s Ratings issued two reports this year, in which each quarter witnessed an improvement in the rating of the company, adding that the company managed to achieve stability in profits after years of accumulated losses, with a significant improvement in insurance operations supported by current investments.
The CEO pointed out that there the insurance sector carries great opportunities related to the fintech and new insurance products that have not yet entered the Saudi market, indicating that the goals of Vision 2030 rely heavily on strong insurance foundations to protect public assets in the Kingdom.
He predicted significant growth in new sectors that did not witness a noticeable movement in the past period, with an acceleration in development.
In July, MEDGULF and Buruj signed a non-binding memorandum of understanding (MoU) to evaluate the feasibility of a potential merger, according to data compiled by Argaam.
According to the MoU, MEDGULF will be the merging company through a share-swap deal.
MEDGULF will raise its capital by issuing new shares to Buruj shareholders, based on the agreed swap ratio.
The Mediterranean and Gulf Insurance and Reinsurance Co.’s (MEDGULF) CEO Umar Al Mahmoud said that the process of the merger with Buruj Cooperative Insurance Co. is progressing well.
In an interview with Argaam on the sidelines of the Financial Academy Forum, he noted that there is a great cooperation between the departments of both companies during the ongoing full financial examination, along with their commitment to the previously set plan.
For More Mergers and Acquisitions
Al Mahmoud expected the company’s performance to improve during the third quarter of this year, looking forward to offsetting the accumulated losses within a short period.
He explained that Moody’s Ratings issued two reports this year, in which each quarter witnessed an improvement in the rating of the company, adding that the company managed to achieve stability in profits after years of accumulated losses, with a significant improvement in insurance operations supported by current investments.
The CEO pointed out that there the insurance sector carries great opportunities related to the fintech and new insurance products that have not yet entered the Saudi market, indicating that the goals of Vision 2030 rely heavily on strong insurance foundations to protect public assets in the Kingdom.
He predicted significant growth in new sectors that did not witness a noticeable movement in the past period, with an acceleration in development.
In July, MEDGULF and Buruj signed a non-binding memorandum of understanding (MoU) to evaluate the feasibility of a potential merger, according to data compiled by Argaam.
According to the MoU, MEDGULF will be the merging company through a share-swap deal.
MEDGULF will raise its capital by issuing new shares to Buruj shareholders, based on the agreed swap ratio.
