Private equity firm BlueFive Capital has agreed to invest about SAR 126 million ($34 million) in Saudi-listed insurer Gulf General Cooperative Insurance (GGI).

Riyadh-based GGI has been under pressure from accumulated losses, and the deal is designed to reset its balance sheet and give it a fresh start. GGI's net losses narrowed to SAR 14 million in Q1, 2026, from SAR 23.78 million in Q1, 2025.

The company will first cut its capital by SAR 176 million to wipe out losses, then immediately raise it back to SAR 300 million by issuing 17.6 million new shares.

The Abu Dhabi firm will take 12.6 million of those new shares, ending up with a 42% stake and becoming the key shareholder.

Another 5 million shares will go to existing major shareholders, who are converting a SAR 50 million loan into equity. That works out to an implied price of around SAR 10 per share.

SNB Capital and A&O Shearman are advising BlueFive on the deal, while GIB Capital and AS&H Clifford Chance are advising GGI.

BlueFive is using the deal as a starting point to build a bigger insurance platform in the region, looking to consolidate smaller players and tap into growth across Saudi Arabia and the wider Gulf, especially in Shariah-compliant insurance.

The transaction still needs regulatory and shareholder approvals before it can close.

(Writing by Ahmad Mousa; editing by Seban Scaria)
Ahmad.mousa@lseg.com