Al Ahlia CEO says merger with Gulf Union will create an integrated competitive entity

Al-Ahlia for Cooperative Insurance Co.’s chief executive officer, Mesheal AlShayea, said that the merger with Gulf Union Cooperative Insurance Co. will create an integrated competitive entity, on the geographical and technical levels, as well as in terms of products and human resources.

He added in an interview with CNBC Arabia that the merger will boost solvency margins, competitiveness, and the company’s ability to retain existing clients and attract new ones.

He also noted that the company plans to invest in technology, expand locally and introduce new products such as general insurance and savings plans, which will strengthen its financial position and maximize shareholders’ profits.

Upon the merger completion, the company will look into fostering strategic partnerships, AlShayea stated.

On the Saudi insurance sector, he pointed out that the current circumstances require further mergers of small capital firms to create larger competitive entities.

On June 4, Gulf Union signed a binding merger agreement with Al-Ahlia to acquire all its shareholders’ issued shares through a share swap without any cash payment, according to data compiled by Argaam.