Saudi insurance merger to create massive investment fund

The merger will create cost savings of tens of millions of riyals

  
Close up of Life Insurance Policy with pen, calculator. image used for illustrative purpose.

Close up of Life Insurance Policy with pen, calculator. image used for illustrative purpose.

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RIYADH: The Saudi Public Pension Agency’s (PPA) merger with the General Organization for Social Insurance (GOSI) will create in one of the Kingdom’s largest investment funds, estimated at billions of riyals, said GOSI Assistant Governor for Insurance Affairs Nader AlWahibi.

The merger will create cost savings worth tens of millions of riyals and help maximize revenues, he told Asharq on Wednesday. The similarity in investment policy of the two institutions will help them harmonize strategy after the merger, he said.

The Saudi Cabinet approved the merger to unify the public and private sectors’ insurance protection umbrella, SPA reported on Wednesday, citing a statement by the two institutions.

More than half of the PPA’s investment portfolio is in the Saudi market, including 67 listed companies and three funds, CNBC Arabia reported in December 2020, citing PPA Governor Mohammed Talal Alnahas.

The PPA invests in over 19 non-listed companies and in National Debt Management Center issues of sukuk and bonds in addition to SR17 billion ($4.53 billion) in the real estate sector.

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