Chubb Arabia Cooperative Insurance Company, the Saudi Arabian arm of global re/insurer Chubb, has said that it plans to enter into talks with Al Ahli Takaful Company about the possibility of a merger.
If a merger discussion is agreed, both companies will sign a non-binding memorandum of understanding to evaluate a potential merger.
Re/insurers in Saudi Arabia have been increasingly pursuing M&A deals following the introduction of more stringent capital requirements.
However, Chubb stipulated that its entry into discussions does not mean that a merger will happen between the two companies.
Instead, it said that the talks would only help the parties to explore the potential for a mutually beneficial arrangement.
Additionally, regulatory approvals will still need to be obtained before a possible merger could go ahead.
Chubb Arabia Cooperative Insurance Company is one of the largest capacity multiline property and casualty insurers operating in the Kingdom of Saudi Arabia.
With offices in all three major cities of the country, Chubb Arabia provides commercial property and casualty insurance, personal accident and group life insurance to a range of clients.
