Allied Cooperative hires advisor for potential merger with Malath

Allied Cooperative Insurance Group (ACIG) has appointed Saudi Kuwaiti Finance House to advice on its potential merger with Malath Cooperative Insurance & Reinsurance.

The financial advisor will prepare studies necessary to complete the merger process, which is still pending regulatory approvals, the company said in a statement to Tadawul on Thursday.

Allied Cooperative and Malath agreed to study the feasibility of a potential merger last month.  

 The two insurers said they would sign a non-binding memorandum of understanding (MoU) within 12 months to carry out the related technical, financial, and legal studies.

Although the Saudi insurance market is one of the largest in the Arab Gulf region, some of its smaller firms have suffered the erosion of 50 percent or more of their capital.