Exclusive Financial Advisor to Saudi Reinsurance Company
- March 8, 2024
Oppenheimer Europe Ltd. acted as Exclusive Financial Advisor to Saudi Reinsurance Company on the announced sale of its 49.9% stake in Probitas Holdings (Bermuda) Limited to Aviva Insurance Limited for £120m
On 3rd March 2024, Saudi Reinsurance Company (“Saudi Re”) signed a definitive agreement to sell its entire 49.9% stake in Probitas1 to Aviva Insurance Limited, a subsidiary of Aviva plc, for a fixed consideration of £120m2.
The transaction was concluded on highly attractive financial terms for Saudi Re, generating market-leading transaction multiples for Lloyd’s and strong returns on their initial investment in the business.
Commenting on the transaction, Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said “We believe the transaction will enable Saudi Re to strengthen its competitive position and reorient our financial resources towards new growth opportunities domestically and internationally.”
This transaction reinforces Oppenheimer’s position as the M&A advisor of choice within the Insurance market, specifically at Lloyds, and strengthens its international recognition within the sector. This follows Oppenheimer advising Carbon Underwriting on its minority investment from Apiary Capital, BDB Holdings Ltd on its sale to Brown & Brown, Inc., QBE on the sale of selected Irish commercial insurance portfolios to Ascot Group and Agora Syndicate on its sale to IQUW.
Saudi Re is Saudi Arabia’s only reinsurance company, serving clients in more than 40 countries across the Middle East, Asia and Africa. The company specializes in both life and non-life reinsurance solutions and is listed on the Saudi Stock Exchange (Tadawul) (SASE: 8200), with a market capitalization of SAR 2,290m (as of 5th March 2024).
Based in Bermuda, Probitas Holdings (Bermuda) Limited is the ultimate holding company of Probitas Group which includes Lloyd’s Syndicate 1492, a Lloyd’s underwriting syndicate specialising in property, construction and casualty insurance and reinsurance solutions. Headquartered in London, Syndicate 1492 writes business globally and is one of the most profitable syndicates in Lloyd’s of London.
Aviva plc (“Aviva”) is one the largest insurance businesses in the world, with a leading presence in the UK, Ireland and Canada. Writing c.£19bn in life & non-life premiums, Aviva is one of UK’s most prominent financial institutions and is listed on the London Stock Exchange (LSE: AV.), with a market capitalization of c.£12.3bn (as of 5th March 2024).
The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in mid-2024.
1 Acquisition of 100% of Probitas Holdings (Bermuda) Limited, including its subsidiaries (“Probitas”)
2 Transaction to be settled in cash subject to customary closing adjustments
Read the full press release on the Saudi Arabian Stock Exchange here.
Philippe Jacquemard
Title:Managing Director, Head of EMEA
Contact
philippe.jacquemard@opco.com
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