GIG notified of ownership change in Kuwaiti parent company

Logo of Gulf Insurance Group (GIG Saudi) 

Gulf Insurance Group (GIG Saudi) stated that it received a new notificationfrom a major shareholder, GIG Gulf, on the completion of an off-market trade, which, when settled, will change the ownership structure of its parent company, Gulf Insurance Group (GIG Kuwait). 

In a filing to Tadawul, the Saudi insurer added that after receiving the relevant regulatory approvals and pursuant to an agreement signed on April 19, 2023, Kuwait Projects Co. (KIPCO) and Fairfax Barbados Corp. completed the acquisition through an off-market trade on Dec. 13, 2023. They agreed that settlement will be completed later in line with applicable mechanisms. 

Fairfax Barbados Corp is a subsidiary of Fairfax Financial Holdings Ltd.  

Completion of the transaction will result in the transfer of KIPCO’s 46.32% stake to Fairfax Barbados, with Fairfax Group owning 90.01% of GIG Kuwait, which in turn holds 99% of GIG Gulf. GIG Gulf owns 50% of GIG Saudi. 

The change in the shareholding of GIG Kuwait will not impact the legal structure of GIG Saudi, the board of directors, operating model, management, employees, customers or branding of GIG Saudi.

Fairfax Group is one of the world’s largest global insurers operating across 40 markets, engaged in property, casualty insurance and reinsurance and investment management.

In April, GIG Saudi was notified by GIG Bahrain of a potential change in the shareholding of its Kuwait-listed parent company, according to data available with Argaam.