Fairfax Monetary Holdings has signed an settlement to amass about 46.32% fairness in Gulf Insurance coverage Group from Kuwait Initiatives Firm (Kipco) for $860m, at a charge of KWD2 ($6.5) per share.
Gulf Insurance coverage Group (GIG) is a number one insurance coverage group in Center East and North Africa.
With this transfer, Fairfax Monetary Holdings will change into the most important shareholder of GIG, rising its stake from 43.69% to 90.01%.
A holding firm, Fairfax, through its subsidiaries, primarily operates in property and casualty insurance coverage, reinsurance and the associated funding administration house.
This transfer is predicted to learn GIG with Fairfax’s extensive international insurance coverage expertise in additional than 40 nations.
Fairfax chairman and CEO Prem Watsa stated: “We’re excited to extend our possession curiosity in GIG.
“GIG is among the many largest and most diversified insurance coverage teams within the Center East and North Africa area, with operations in 13 totally different nations and a market-leading presence in every of Kuwait, Jordan, Bahrain and Egypt. Since our first funding in 2010, GIG has confirmed to be an incredible firm.”
KIPCO group CEO Sheikha Dana Naser Sabah Al Ahmad Al Sabah stated: “Our partnership with Fairfax is one which we significantly worth. Collectively we have now grown Gulf Insurance coverage Group into a number one participant within the MENA insurance coverage market.
“As a holding funding firm, KIPCO’s technique is to amass, scale and exit corporations when the time is opportune. Our journey has been one in every of success, and we consider that GIG will proceed to develop underneath Fairfax and stay a number one participant out there.”
The deal closure is topic to regulatory approval and different customary closing situations.
It’s anticipated to shut within the second half of 2023.
