MedGulf weighs selling some assets

Riyadh-based Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) is considering selling some of its assets, Bloomberg reported, citing sources familiar with the matter.

“No agreements have been signed yet,” the sources said.

MedGulf and its investment banking arm, Banque Saudi Fransi are evaluating strategic options, as international insurers are seeking access to the Kingdom and large family firms within the country may be interested in the insurer, sources said.

MedGulf shares have fallen 41 percent this year, giving the company a market value of about $425 million, according to data compiled by Bloomberg. The stock dropped as much as 4.9 percent on May 28 compared to a 1.1 percent decline for the benchmark Tadawul All Share Index (TASI).

According to data compiled by Argaam, Mediterranean & Gulf Insurance Co. owns a 40.5 percent stake in Medgulf, while Saudi Investment Bank owns 19 percent.

In March, the insurer’s board of directors recommended increasing capital through a SAR 400 million rights issue to boost the firm’s solvency margin and support future activities.