Saudi Re to buy $25 mln stake in Probitas Holdings Bermuda Limited

Saudi Re for Cooperative Reinsurance Co. (Saudi Re) has signed a memorandum of understating (MoU) to acquire 49.9 percent of Probitas Holdings Bermuda Limited (PHBL) for an initial valuation of $25 million, the insurer said in a statement to Tadawul on Thursday.

Both parties are required to finalize regulatory documents by July 20, according to the agreement.

PHBL is a limited liability company registered in Bermuda. It invests in insurance and reinsurance business in the Lloyds market.

The deal involves PHBL’s three subsidiaries, Probitas Holdings (UK) Ltd,

Probitas Corporate Capital Ltd, and Probitas 1492 Services Limited.

Saudi Re will self-finance the deal, it said in a statement to Tadawul.

“Saudi Re aims to expand its business and investments in the global insurance and reinsurance market particularly UK’s Lloyds market,” Chief Executive Fahad AlHesni said in a separate statement. 

The company has started the due diligence process to assess the financial, legal, taxation, and actuarial aspects related to the transaction, he added.