Saudi Re signs deal to divest stake in Probitas Bermuda for £120M

Logo of Saudi Reinsurance Co. (Saudi Re)

Saudi Reinsurance Co. (Saudi Re) signed, on March 3, a share purchase agreement to sell its entire 49.9% stake in Probitas Holdings (Bermuda) Ltd (PHBL), including its subsidiaries, to Aviva Insurance Ltd, according to a filing to Tadawul.

The deal is valued at £120 million (SAR 570 million), to be paid in cash, subject to final closing adjustments.

The acquisition is subject to closing conditions, including regulatory approvals from relevant authorities, the statement said, adding that the transaction is expected to close in mid-2024.

Based in Bermuda, Probitas Holdings specializes in insurance and reinsurance services. It owns Probitas Corporate Capital Ltd, Probitas 1492 Services Ltd, Probitas Holdings (UK) Ltd, Probitas Managing Agency Ltd, Probitas 1492 Services Mexico S.A de C.V, Probitas 1492 (Europe) SRL/BV and Probitas 1492 (Pacific) Pty Ltd.

The company's book value reached SAR 201.16 million in Q3 2023, the statement said, adding that its financial statements for the last three years are available in Saudi Re's financials.

The deal aims to strengthen the financial position and reallocate assets towards growth opportunities in domestic and international markets.

The transaction will have a positive impact on Saudi Re's results in 2024.

The Saudi insurer will use the acquisition proceeds to support its growth and strengthen its financial position.

There are no related parties to the transaction, the statement said.