Abu Dhabi  National Insurance Co. (ADNIC) has acquired 51% of the share capital of Allianz Saudi Fransi Cooperative Insurance Co., a Saudi Arabia-listed insurer, for 499 million riyals ($133.1 million).

The deal was concluded at a weighted average price of approximately SAR 16.31 per share, plus customary transaction expenses, the ADX-listed ADNIC said in a regulatory filing on Thursday.

The transaction is in line with ADNIC's strategy to expand into the Saudi Arabian market, it added.

The GCC insurance industry saw a surge in mergers and acquisitions (M&A) with around 33 deals struck between 2021 and 2023, said a recent report by the UAE-based investment banking advisory firm, Alpen Capital. The advisory firm forecasts the Saudi insurance market to grow at 5.8% growth between 2023 and 2038.

(Writing by Brinda Darasha; editing by Seban Scaria)