Saudi Re sells its entire stake in Probitas Holding for $158m
RIYADH, July 11, 2024
Saudi Reinsurance Company (Saudi Re) has announced that it has completed all procedures for the sale of its entire 49.9% stake in Probitas Holdings (Bermuda) to Aviva Insurance Limited for £123 million ($158 million).
The proceeds of the sale will help Saudi Re strengthen its capital base and boost the firm's solvency margin.
The deal would support its growth and financial position, having a positive impact on its financial statements in the third quarter of the 2024 financial year, said the company in its filing to Saudi bourse Tadawul.
It noted that the book value of the asset as of the first quarter of 2024 was SAR211 million ($56.2 million).
Announcing the stake sale, Saudi Re Acting CEO Ahmad Al Jabr said: "This transaction aims to enhance the company's competitive position and financial position, enabling it to redirect investments to develop growth opportunities in both local and international markets."
"The transaction offered attractive terms, and the proceeds from the sale will strengthen the company's capital base and increase its solvency margin. This will create significant value for shareholders, generating a return more than five times the initial investment," he added.-TradeArabia News Service
