Kuwait City - Gulf Insurance Group, one of the leading insurance service providers in the Middle East and North Africa, announced today that it has successfully completed the acquisition of AXA’s operations in the Gulf region after obtaining the necessary regulatory approvals from respective markets. This transaction is marked as one of the largest insurance acquisitions in the region for a total cash consideration of US$ 474.75 million.
In line with the acquisition agreement that was signed in late November 2020, the transaction included AXA’s shareholding in AXA Gulf (Bahrain, UAE, Oman & Qatar) and AXA Cooperative Insurance Company (KSA). The acquisition of AXA’s stake in AXA Green Crescent Insurance Company in UAE has been approved by all necessary regulatory authorities, including by the Central Bank of the UAE and is in the final stage of the completion process.
With this transaction, GIG also acquired Yousuf Bin Ahmed Kanoo Group of Companies’ (YBA Kanoo) shareholding in AXA Gulf.
With an extensive presence in the region for over 70 years, AXA in the Gulf is the largest international composite insurer across five markets with a wide range of insurance products and services for corporate and individual customers.
The transaction substantially expands GIG’s insurance business portfolio, bringing the Group into two new markets in Oman and Qatar, and reinforces its operations in Bahrain, UAE and KSA. The strengthened client-centric quality service, combined revenue and human capital and sustainable growth strategy, help the Group to become one of the largest insurers and the most diversified in the region.
Group CEO of Gulf Insurance Group, Mr. Khaled Saoud Al Hasan said, “It is with absolute pleasure that we announce the completion of the acquisition. This is a remarkable milestone in our expansion journey. The exponential insurance business growth and the quality of services will be further enhanced through our enlarged geographical presence (13 markets in the region) to better serve our customers while leveraging the existing international network and ecosystem of AXA Gulf. I would like to thank the Group Chairman, Board members, major shareholders - KIPCO and FAIRFAX – for their continuous support towards its successful completion. I would also like to thank our team who participated for their extraordinary efforts in accomplishing this acquisition and all regulatory parties for their support towards this successful end result. On behalf of the GIG family, I am delighted to welcome our new colleagues. Wishing everyone all the success.”
On his part, AXA Gulf CEO, Mr. Paul Adamson said, “Thanks to the rigorous but efficient collaboration with local regulators in our five respective markets, we have been able to retain the integrity of our existing operations. Our partners, brokers and customers have shown trust and patience. As we enter into the final stage of the transition, we are looking forward to continuing to deliver on our promises with the support of our new shareholders and the guaranteed continuity of our operations and teams, which will ensure that our customers are not impacted by this transaction. This new chapter will allow us to build our scale, capacity and footprint across the region and enable us to grow our competitive advantage through the creation of sustainable employment whilst supporting the local communities in which we operate.”
The rebranding of AXA to GIG will take course during the next few months.
© Press Release 2021
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