MEDGULF CEO: Merger with Buruj is going as planned

Umar Al Mahmoud, CEO of MEDGULF

The merger process with Buruj Cooperative Insurance Co. is progressing well, CEO of The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) Umar Al Mahmoud told Argaam.

Speaking on the sidelines of the Financial Academy Forum (FAF 2024), Mahmoud said that full financial examination is underway and the two companies are cooperating, with commitment to the previously set plan.

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He said the company's performance is on track to improve in the third quarter of this year, and expects to offset the accumulated losses within a short period.

Moody's issued two reports this year, with the company’s rating improving in each quarter, Mahmoud said. MEDGULF achieved stable profits, after years of accumulated losses, with a significant improvement in insurance operations supported by current investments, he added.

The CEO pointed to the significant opportunities in the insurance sector, related to fintech and new insurance products that are yet to enter the Saudi market. The goals of Vision 2030 rely heavily on strong insurance foundations to protect public assets in the Kingdom, he noted.

He predicted significant growth in new sectors that did not witness a noticeable movement in the past period, with an acceleration in development.

In July, MEDGULF and Buruj signed a non-binding memorandum of understanding (MoU) to evaluate the feasibility of a potential merger, data compiled by Argaam showed.

According to the MoU, MEDGULF will be the merging company through a share-swap deal.

MEDGULF will raise its capital by issuing new shares to Buruj shareholders, based on the agreed swap ratio.