AlAhli Takaful, Chubb Arabia to start merger talks

The board of directors of AlAhli Takaful Co. and Chubb Arabia Cooperative Insurance Co. approved on Feb. 18 entering into preliminary discussions to study the possibility of a merger.

The insurers said in separate statements to Tadawul that the discussions will not necessarily lead to a merger.

Both companies will sign a non- binding memorandum of understanding (MOU) to evaluate the potential merger once the discussion is agreed upon, the statement added.

The merger completion will be subject to official regulatory approvals.

Further announcements related to any developments in this matter will be made in due course, in accordance with any relevant regulatory disclosure requirements.

According to data compiled by Argaam, a number of mergers were recently announced in Saudi Arabia, including the agreement between Walaa Cooperative Insurance Co. and MetLife AIG ANB Cooperative Insurance Co.

In January this year, Aljazira Takaful Taawuni Company and Solidarity Saudi Takaful Co. signed a modified non-binding memorandum of understanding (MoU) to evaluate the feasibility of a merger.