‎“SAMA” governor: Merger is a strategic option to revitalize the ‎insurance sector, raise its efficiency ‎

Governor of the Saudi Central Bank, Dr. Fahd bin Abdullah Al-Mubarak, affirmed the Central Bank’s continuation to encourage and stimulate mergers and acquisitions in the insurance sector, pointing at the same time to the readiness of the Central Bank, with its technical expertise, to provide assistance and support, as the merger is a strategic option to activate the sector, raising its efficiency, enhancing its ability to contribute to the growth and stability of the national economy, and facing and bearing the risks faced by economic activities.

Al-Mubarak honored the two board chairmen and CEOs of “Walaa Cooperative Insurance” and “SABB Takaful” companies; on the occasion of the two companies’ merger into force on October 19, 2022 AD, indicating that this is the fifth merger witnessed by the insurance sector since 2020, which confirms the Central Bank’s endeavor to develop and support the insurance sector; as it is one of the most vital sectors that the Kingdom’s Vision 2030 has given special attention through the Financial Sector Development Program, one of its initiatives included encouraging and facilitating mergers and acquisitions in the insurance sector.

He also called on the rest of the companies to follow the example of “Walaa Cooperative Insurance” and “SABB Takaful” and the rest of the previously merged companies, noting the many benefits that will serve the sector from companies, beneficiaries and policy holders, and what these companies will reap from mergers and acquisitions, represented in strengthening Solvency, financial strength and competitiveness, improving operational and technical efficiency, expanding products and attracting human competencies.