SNB Capital Closes Cross-border Insurance M&A Transaction

SNB Capital, the leading and largest investment bank in the Middle East, led the buyside advisory on the SAR 499 million acquisition of 51% of the share capital of Saudi Exchange (Tadawul)-listed Allianz Saudi Fransi Cooperative Insurance Company (ASF) by leading UAE-based multi-line regional insurance and reinsurance provider Abu Dhabi National Insurance Company (ADNIC).

The acquisition of a majority stake in ASF by Abu Dhabi Securities Exchange (ADX)-listed ADNIC, the second largest insurer in the UAE by premium, generating approximately AED 5 billion in gross written premiums (GWP) in 2023, marks a significant expansion of its offerings and portfolio across the Gulf Cooperation Council.

This deal merges ADNIC’s capabilities with ASF’s balanced Saudi portfolio across health, motor, non-motor, property & casualty, and life insurance. By integrating with ASF, ADNIC aims to enhance its competitive stance in the region, diversify its insurance portfolio, and gain access to the growing Saudi Arabian insurance market.

The Transaction comes as the Saudi insurance sector is expected to continue consolidating through mergers & acquisition (M&A) activity on the back of supportive regulatory amendments under the Financial Sector Development Program (FSDP) and Vision 2030. 

Fitch Ratings also attributes this trend to increased technological advancement in the sector, as well as the implementation of new minimum capital requirements, such as staggered reinsurance cession to the local market of up to 30% by 2025.

Zaid Ghoul, MD and Head of Investment Banking at SNB Capital noted several other potential integration and acquisition opportunities in the Saudi insurance sector are currently in progress.

“Companies active in the Saudi insurance sector are investing to strengthen financial solvency, enhance operational efficiencies, and create more resilient and innovative platforms to enhance overall customer experience,” said Ghoul.

SNB Capital continues to play a leading role in attracting visible cross-border transactions including Americana Restaurants’ IPO in 2022, which was the first ever concurrent and dual listing between Tadawul and ADX.