Solidarity subsidiary completes merger

15/03/2016 07:43 AST

Bahrain-based Solidarity Group Holding has announced a merger between its Jordanian subsidiary, First Insurance Company and Yarmouk Insurance Company.

The merger has resulted in a strengthened financial institution with a total paid-up capital of more than $40 million, positioning itself among largest capitalised financial institutions in Jordan.

Solidarity Group chief executive and First Insurance chairman Ashraf Bseisu said in a statement that the merger between First and Yarmouk was started through a transaction on Amman Stock Exchange in April last year in a deal worth $15m.

Jordanian industry’s first merger in 25 years required only 11 months to complete, he added. Originally founded more than 30 years ago, Yarmouk Insurance operates in life and non-life insurance businesses.

“The merged human resource base provides for the selection of a strong and a capable human capital pooled from within the existing resources,” Mr Bseisu said.

“We believe First Insurance will not only reinforce its position as the leading takaful company in Jordan but will also reinforce its position as one of the largest insurance service providers in the country.

“The growth opportunity in the Jordanian market is significant and now with our stronger presence and wider coverage and product range we have the perfect platform to capitalise on those opportunities,” he added.

“As part of its growth strategy, Solidarity Group actively pursues promising expansion opportunities in the insurance industry within the Mena region.”

Gulf Daily News