Abu Dhabi National Insurance Company (ADNIC) is set to acquire a 51% stake in Allianz Saudi Fransi Cooperative Insurance Co for $133.1 million.

ADNIC plans to purchase the share capital via internal cash resources, and the transaction is expected to close in the coming quarters, according to a filing on the ADX, where its shares trade.

The transaction is expected to strengthen ADNIC's competitive position in the GCC insurance markets, particularly in Saudi Arabia, the company said.

For the six-month period ended 30 June 2023, ADNIC's total insurance revenue stood at 2.14 billion UAE dirhams, compared to AED 2.24 billion for the same period in 2022.

Despite competition, ADNIC's growth in its commercial and consumer division prompted gross written premiums to grow by 20.1% to reach AED5.13 billion.

(Reporting by Seban Scaria; editing by Daniel Luiz)