Kuwait-based GIG completes acquisition of AXAs Gulf operations

MANAMA: Kuwait-based Gulf Insurance Group (GIG) has completed the acquisition of French insurer AXA’s operations in the Gulf region, including Bahrain, for a total cash consideration of $474.75 million.

The deal includes AXA’s shareholding in AXA Gulf with operations in Bahrain, UAE, Oman and Qatar as well as AXA Cooperative Insurance Company in Saudi Arabia.

With the transaction, GIG also acquired YBA Kanoo’s shareholding in AXA Gulf and in AXA Cooperative Insurance Company.

AXA Gulf will now hold 50pc ownership in the Saudi Arabian entity.

Fawzi Kanoo, deputy chairman of YBA Kanoo, commented: “Our company has witnessed the evolution and growth of AXA in the Gulf Region over the past 70 years. With this transaction now complete, we are proud to see the beginning of a new chapter for this organisation under a new brand and strengthened footprint with powerful new shareholders. Our business activities will remain insured by the new entity as we are fully confident of a successful future.”

AXA in the Gulf is the largest international composite insurer across Saudi Arabia, the UAE, Bahrain, Oman and Qatar, with a total customer base of more than 1m.

In the coming months, the AXA Gulf brand will transition into GIG Gulf.

The leadership team, organisation and people will not be affected and service levels for customers and partners will not change.

“With the support of our new shareholders, this new chapter will allow us to build our scale, capacity and footprint across the region and grow our competitive advantage through the creation of sustainable employment whilst supporting the local communities in which we operate,” Paul Adamson, chief executive of AXA Gulf.

KIPCO – Kuwait Projects Company – is GIG’s largest shareholder, followed by the Canadian-based Fairfax Financial Holdings. The insurer’s reported consolidated assets stand at $2.66 billion as of end-June 2021.

The completion of this transaction strengthens GIG’s overall footprint in the region.

“The successful completion of this transaction reinforces the continuous commitment to our strategic direction and strengthens our positioning to become one of the largest insurance players in the Mena region,” said GIG Group chief executive Khaled Al Hasan.

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