- Fairfax Financial Holdings (FFH) has signed an agreement with Kuwait Projects Company (KIPCO)
- Fairfax will acquire all of KIPCO’s shares of Gulf Insurance Group, increasing its stake from 43.69 per cent to 90.01 per cent
- Gulf Insurance Group is a key player in the Middle East and North African insurance markets
- Fairfax Financial is primarily engaged in property and casualty insurance and reinsurance and the associated investment management
- Fairfax Financial Holdings (FFH) last traded at $910.12 per share
Fairfax Financial Holdings (FFH) has signed an agreement with Kuwait Projects Company (KIPCO).
Pursuant to the agreement, certain Fairfax affiliates will acquire all of KIPCO’s shares of Gulf Insurance Group (GIG), representing 46.32 per cent of the group’s equity.
Consideration is 263,653,200 Kuwaiti Dinar (US$860 million), representing a price of 2.00 Kuwaiti Dinar (US$6.53) per share.
Following the closing, which is expected by the second half of 2023, Fairfax’s interest in GIG will increase from 43.69 per cent to 90.01 per cent.
GIG is one of the largest and most diversified insurance groups in the Middle East and North Africa region, with operations in 13 different countries and a market-dominating presence in Kuwait, Jordan, Bahrain and Egypt. The company posted a net profit of US$124.7 million in fiscal 2022.
“We are excited to increase our ownership interest in GIG,” said Prem Watsa, Chairman and CEO of Fairfax. “Since our first investment in 2010, GIG has proven to be a great company. It has provided stellar results over the long term and is run by an experienced and talented management team led by Khaled Saoud Al Hasan. We are thankful to our partners at KIPCO for giving us this opportunity to expand our insurance operations in the rapidly growing Middle East and North Africa market.”
“Our partnership with Fairfax is one that we greatly value,” said Sheikha Dana Naser Sabah Al Ahmad Al Sabah, KIPCO’s CEO. “Together we have grown Gulf Insurance Group into a leading player in the MENA insurance market. As a holding investment company, KIPCO’s strategy is to acquire, scale and exit companies when the time is opportune. Our journey has been one of success, and we believe that GIG will continue to grow under Fairfax and remain a leading player in the market.”
Fairfax Financial is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.
Fairfax Financial Holdings (FFH) last traded at $910.12 per share.
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