Arab News, Monday, May 3, 2021 | Ramadan 21, 1442
Saudi insurers Amana and Enaya agree to merge
Amana Cooperative Insurance Company and Saudi Enaya Cooperative Insurance
Company have agreed to merge.
Upon completion of the merger, Enaya’s assets and liabilities will be
transferred to Amana, subject to shareholder and government approval, the pair
said in separate stock exchange filings on Sunday.
Enaya’s shareholders will own 55 percent of the merged entity’s capital and
Amana’s current shareholders will own 45 percent.
Fierce competition among the region’s bloated insurance sector is encouraging
some industry players to combine.
“Ongoing high competition, a contraction in population of about 4 percent across
the GCC on average, and economic uncertainty will weigh on growth prospects and
earnings, while elevated asset risk could lead to further volatility in the
coming quarters,” S&P said in a report on the regional insurance sector in