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Wed 10 Feb 2010 11:19 PM

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RSA Insurance buys Al Ahlia for $49m

Parent company, ONIC Holding will acquire 20.03% stake in RSA Oman in return.

RSA Insurance buys Al Ahlia for $49m
LEADING INSURER: RSA Insurances acquisition of Al Ahlia makes it the largest insurance group in Oman by net written premium. (Getty Images)

RSA Insurance Group announced on Wednesday that it had reached an agreement with ONIC Holding for RSA Oman to acquire Al Ahlia for $49 million.The purchase price is subject to a net asset value adjustment on completion.

In return, ONIC Holding will acquire a 20.03 percent stake in RSA Oman. The transaction will create the largest insurance group in Oman by net written premium.

Paul Holmes, CEO, RSA Middle East, said: “Through this acquisition of Al Ahlia, we create a market leading insurer in Oman and this enhances our emerging markets position in the Middle East.”

Once the transaction is completed, the major shareholders of RSA Oman will be RSA Middle East, ONIC Holding, WJ Towell Company, OHI and Mr Prem Mankand.

Sayyida Rawan Ahmed al Said, group chief executive, ONIC Holding, said: “This strategic tie up is a significant step for ONIC Holding by aligning with an international player in the insurance sector.”

He added: “We believe that this alliance will enhance value to ONIC Holding’s stakeholders and would have a positive impact on the insurance industry in Oman.”

The completion of the transaction is subject to shareholder and regulatory approvals.

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