RSA Insurance Group plc (RSA) and ONIC Holding SAOG singed here yesterday an agreement in which RSA Oman will acquire Al Ahlia from ONIC Holding for RO 19 million ($49 million). The purchase price is subject to a net asset value adjustment on completion. In return ONIC Holding will acquire a 20.03 per cent 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. We welcome ONIC Holding as a local shareholder in Oman and value their strategic support as we drive the business forward. “
Sayyida Rawan Ahmed al Said, Group Chief Executive, ONIC Holding said, “This strategic tie-up is a significant step for ONIC by aligning with an international player in the insurance sector. We believe that this alliance will enhance value to ONIC’s stakeholders and would have a positive impact on the insurance industry in Oman.
We look forward to having a mutually beneficial and long term relationship with RSA.”
Following the transaction, the major shareholders in RSA Oman will be RSA Middle East with 69 per cent and ONIC Holding with 20.03 per cent. The remaining 11 per cent will be held by WJ Towell & Company, OHI and Prem Mankad. Completion of the transaction is subject to shareholder and regulatory approvals.
Shaikh Khalid Hilal al Mawali, Chairman, Al Ahlia Insurance, was also present on the occasion. Established in 1985, Al Ahlia operates through a network of 20 branches across the Sultanate of Oman and provides Motor, Property, Engineering and Marine insurance. In 2008, gross written premiums were RO 25 million ($65m) and net written premiums were RO 16 million ($42m).
Established in 1972, RSA Oman offers a range of personal and commercial lines insurance including motor, marine, property and engineering. RSA Middle East is the major shareholder in RSA Oman, with a 67 per cent holding increasing to 69 per cent post this transaction. Oman National Investment Corporation Holding (ONIC Holding), is the leading financial services conglomerate in Oman with diversified holdings.
Established in 1985, Al Ahlia operates through a network of 20 branches across the Sultanate of Oman and provides Motor, Property, Engineering and Marine insurance. In 2008 gross written premiums were RO 25 million ($65m) and net written premiums were RO 16 million ($42 million).