Walaa Insurance, Al Sagr sign MoU to study merger

The MoU will end when the two insurers sign the merger agreement, or after six months from April 26, 2018.

Either company can terminate the MoU by written notice to the other party.

The merger process is subject to the regulatory approvals.

Last month, Malath Cooperative Insurance Co. and Allied Cooperative Insurance Group extended their initial agreement to study the feasibility of a potential merger for six months.

Other insurers that have looked at consolidation include Gulf Union Cooperative Insurance and Al Ahlia for Cooperative Insurance, which started talks last year for a potential merger.

The consolidation move comes after smaller firms suffered erosion of 50 percent or more of their capital in the Saudi insurance market.