Fairfax Monetary Holdings has signed an settlement to amass about 46.32% fairness in Gulf Insurance coverage Group from Kuwait Initiatives Firm (Kipco) for $860m, at a fee of KWD2 ($6.5) per share.
Gulf Insurance coverage Group (GIG) is a number one insurance coverage group in Center East and North Africa.
With this transfer, Fairfax Monetary Holdings will develop into the biggest shareholder of GIG, growing its stake from 43.69% to 90.01%.
A holding firm, Fairfax, by way of its subsidiaries, primarily operates in property and casualty insurance coverage, reinsurance and the associated funding administration area.
This transfer is anticipated to profit GIG with Fairfax’s huge world insurance coverage expertise in additional than 40 nations.
Fairfax chairman and CEO Prem Watsa mentioned: “We’re excited to extend our possession curiosity in GIG.
“GIG is among the many largest and most diversified insurance coverage teams within the Center East and North Africa area, with operations in 13 completely different nations and a market-leading presence in every of Kuwait, Jordan, Bahrain and Egypt. Since our first funding in 2010, GIG has confirmed to be a terrific firm.”
KIPCO group CEO Sheikha Dana Naser Sabah Al Ahmad Al Sabah mentioned: “Our partnership with Fairfax is one which we significantly worth. Collectively we now have grown Gulf Insurance coverage Group into a number one participant within the MENA insurance coverage market.
“As a holding funding firm, KIPCO’s technique is to amass, scale and exit corporations when the time is opportune. Our journey has been considered one of success, and we consider that GIG will proceed to develop beneath Fairfax and stay a number one participant out there.”
The deal closure is topic to regulatory approval and different customary closing circumstances.
It’s anticipated to shut within the second half of 2023.