A non-binding memorandum of understanding has been signed between Liva KSA and Malath Insurance to evaluate the potential merger. Both companies will conduct due diligence as they explore the statutory merger, which will adhere to Saudi Arabia’s Companies Law and Merger and Acquisition Regulations.
The potential merger is part of Liva Group's broader strategy to strengthen its position in the rapidly growing Saudi market. Khalid Al Zubair, Chairman of Liva Group, emphasized the significance of Saudi Arabia in the company's growth plans, citing the Kingdom's strong market momentum and strategic importance. Martin Rueegg, CEO of Liva Group, added that the merger would enable the company to expand its product offerings, leveraging the growth drivers of Vision 2030 and other regulatory advancements.
Liva KSA, listed on the Saudi stock exchange and majority-owned by Liva Group, generated SAR 522 million (USD 139 million) in gross written premium last year. The potential merger with Malath Insurance could create significant value for stakeholders, positioning Liva as a leading insurer in the GCC.
This move reflects Liva Group's commitment to becoming the insurer of choice in the region, with a focus on delivering innovative solutions tailored to the evolving needs of businesses and communities. If successful, the merger will require the approval of relevant authorities and shareholders.
As the companies proceed with the merger discussions, the outcome will be closely watched by industry analysts and investors, given the potential impact on the competitive landscape of the Saudi insurance market.