GOSI official says merger with PPA to boost financial position, investment performance

Saudi Cabinet’s decision to merge the Public Pension Agency (PPA) with the General Organization for Social Insurance (GOSI) will boost the latter’s financial position, and improve investment performance as well as strategic reach, Nader A. AlWahibi, Assistant Governor for Insurance Affairs, GOSI told Argaam.

It is too early to determine which company will manage GOSI’s investment portfolios; whether it will be Al Ra'idah Investment Co. or Hassana Investment Co., AlWahibi said, while affirming that investments will be managed by one entity, both locally and overseas.

Both entities have some similar business activities that can be merged; it is an administrative and organizational process that aims to unify the insurance protection services for employees in the public and private sectors.

As the merger proceeds, both entities will ensure the optimal operational and financial efficiency, as they will study cutting the administrative expenses, including buildings and staff restructuring, AlWahibi noted.

However, the merger decision will unlikely affect the disbursement of insurance payments or pensions, or even services, he confirmed.

The Saudi Cabinet approved on June 15, to merge PPA with GOSI, Argaam reported.