10th Feb 2010 13:36
IMMEDIATE
10 February 2010
Acquisition
RSA acquires the third largest insurer in Oman
RSA Insurance Group plc (RSA) announces the acquisition of Al Ahlia Insurance Company SAOC for OMR 19m1 (GBP 31m) from ONIC. Al Ahlia is the third largest insurer in Oman, with gross written premiums of OMR 25m (GBP 40m) in 2008. The transaction will create the largest insurance group in Oman by net written premium.
Consideration is payable as a combination of cash and shares in the acquiring entity RSA Oman.
Paul Whittaker, CEO of Emerging Markets, commented, "the acquisition of Al Ahlia creates a market leading insurer in Oman and enhances our Emerging Markets platform in the Middle East."
Completion of the transaction is subject to shareholder and regulatory approvals.
-ENDS
| For further information: | ||||
| Analysts | Press | |||
| Claire Cordell | Louise Shield | |||
| Tel: +44 (0) 20 7111 7212 | Tel: +44 (0) 20 7111 7047 | |||
| Suzannah Oliver | Simon Kutner | |||
| Tel: +44 (0) 20 7111 7140 | Tel: +44 (0) 20 7111 7327 | |||
Notes to editors:
1. The final purchase price is subject to a completion accounting adjustment mechanism
About RSA
With a 300 year heritage, RSA is one of the world's leading multinational quoted insurance groups. It has the capability to write business in over 130 countries and with major operations in the UK, Scandinavia, Canada, Ireland, Asia and the Middle East and Latin America. Focusing on general insurance, it has around 21,000 employees and, in 2008, its net written premiums were £6.5bn.
Shareholder Structure
RSA Group holds 51% of RSA Middle East, which in turn owns a controlling interest in RSA Oman, the acquiring entity. Following the transaction the major shareholders in RSA Oman will be RSA Middle East with 69% and Oman National Investment Corporation Holding (ONIC) with 20%. The remaining 11% will be held by other local partners.
About RSA Oman
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% holding increasing to 69% post this transaction.
About ONIC
Oman National Investment Corporation Holding (ONIC), the vendor, is the leading financial services conglomerate in Oman with diversified holdings in Oman and across the Middle East. It will acquire a 20% stake in the combined entity following the transaction.
About Al Ahlia
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 OMR 25m (GBP 40m) and net written premiums were OMR 16m (GBP 26m).
The consideration and Al Ahlia's premiums were converted using the exchange rate of GBP 1: OMR 0.622 as at 31 December 2009.
Important Disclaimer
This press release may contain 'forward-looking statements' with respect to certain of the Company's plans and its current goals and expectations relating to its future financial condition, performance results, strategic initiatives and objectives. Generally, words such as "may" "could", "will", "expect", "intend", "estimate", "anticipate", "aim", "outlook", "believe", "plan", "seek", "continue" or similar expressions identify forward-looking statements. These forward-looking statements are not guarantees of future performance. By their nature, all forward-looking statements involve risk and uncertainty because they relate to future events and circumstances which are beyond the Company's control, including amongst other things, UK domestic and global economic business conditions, market-related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing impact and other uncertainties of future acquisitions or combinations within relevant industries, as well as the impact of tax and other legislation and other regulations in the jurisdictions in which the Company and its affiliates operate. As a result, the Company's actual future financial condition, performance and results may differ materially from the plans, goals and expectations set forth in the Company's forward-looking statements. Forward-looking statements in this press release are current only as of the date on which such statements are made. The Company undertakes no obligation to update any forward-looking statements, save in respect of any requirement under applicable law or regulation. Nothing in this press release shall be construed as a profit forecast.
Copyright Business Wire 2010
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