Liva Insurance Company (“Liva KSA”) has signed a non-binding memorandum of understanding (MoU) with Malath Cooperative Insurance Company (“Malath Insurance”) to explore a potential merger.
Liva KSA, majority stake owned by Liva Insurance BSC, a subsidiary of Liva Group, offers top-notch insurance services for customers across Saudi Arabia, with SAR 522 million ($139 million) in gross written premium (GWP) last year.
Malath Insurance, founded in 2007, is a leading and distinguished insurance company in the region known for its diverse portfolio, technical services and innovative insurance products, with SAR 871 million ($ 232 million) in GWP last year.
Tariq AlNaeem, Chairman of Liva KSA, commented that,“Liva KSA and Malath share many common values, including a commitment to putting our customers first. We see synergies between the two businesses that can catalyze growth by enhancing the customer experience and expanding product offerings, as well as create more value for our shareholders.”
Tadawul-listed Liva KSA and Malath Insurance will carry out all the essential due diligence as they seek a potential merger, in accordance with the provisions of the Companies Law and Merger and Acquisition Regulations of the Kingdom of Saudi Arabia.
Bader Al-Ali, Chairman of Malath Insurance, stated that, “This strategic partnership with Liva will result in a powerful synergy between the two businesses. Malath and Liva KSA enjoy a diverse range of products and services, as well as advanced technical and technological expertise, which will contribute to building a strong entity capable of competing on multiple fronts. This partnership will empower the merged entity to innovate and provide advanced solutions that better meet customer needs.”
Any transaction would be subject to the signing of a definitive agreement between Liva KSA and Malath Insurance, including the approval of the relevant authorities and shareholders. The MoU will terminate after one year or once the merger agreement is concluded, whichever comes first.
