JEDDAH, 21 April 2007 -- The board of directors of Al Sagr Company for Cooperative Insurance has appointed BMG Financial Advisors to underwrite the offering of 40 percent of its shares to the public in the Saudi capital market.
Al Sagr is one of the companies that have been licensed along with the fifteen other insurance companies to operate in the Kingdom. Al Sagr has been in operation since 1983.
According to Basil Al-Ghalayini, CEO of BMG Financial Advisors, the government has played its part in stimulating growth through the mandatory health insurance and third-party vehicle laws.
"So far, the Saudi government has licensed 15 companies and potentially 21 more companies will be licensed before the year end. The insurance market in Saudi Arabia is estimated to grow from SR6 billion to SR30 billion by 2010," Al-Ghalayini added.
Walid Ayoub, managing director of Al Sagr, emphasized the importance of the smooth transformation of Al Sagr company to a public entity in accordance with Saudi Arabian Monetary Agency's (SAMA's) regulations. BMG is working closely to achieve this in a timely fashion.
© Arab News 2007
