Saudi Re has signed a Memorandum of Understanding with Probitas Holdings (Bermuda) Limited (PHBL) to purchase 49.9% of the shares of the latter.
PHBL invests in insurance and reinsurance business in the Lloyd's market.
The Memorandum of Understanding, which was signed last month, reflects the parties’ agreement over the initial valuation of the deal for a 49.9% stake at US$25 million, as well as involves three subsidiaries of PHBL which are:
- Probitas Holdings (UK),
- Probitas Corporate Capital, a Lloyd’s corporate member which currently owns a large percentage of the capacity rights of Syndicate 1492, and
- Probitas 1492 Services, the services company, which has built a highly experienced underwriting, marketing, actuarial and administration team to underwrite business on behalf of Syndicate 1492.
Mr Fahad Al-Hesni, Managing Director and CEO of Saudi Re, said: “We are excited about this step which we believe will provide Saudi Re with opportunities to expand its business and investments in the global insurance and reinsurance market, particularly the Lloyd’s market in the United Kingdom. This was identified as part of Saudi Re strategy to diversify its operations.”
Asian business represented around 13% of Saudi Re’s portfolio in 2016, according to the company. Its annual report shows that GWP from Asia stood at SAR133.46 million (US$35.6 million), 9% higher than in 2015. Asian business grew by nearly 50% in the first half of 2017.
Saudi Re writes business from more than 15 Asian markets including South Korea, India, China and Pakistan. It opened its Kuala Lumpur office in 2014 to better serve its clients and partners in the region.