Group News
RSA acquires the third largest insurer in Oman
2/11/2010 - RSA acquires the third largest insurer in Oman
RSA Insurance Group plc (RSA) & ONIC Holding SAOG announces an agreement in which RSA Oman will acquire Al Ahlia from ONIC Holding for OMR 19m (US$49m). The purchase price is subject to a net asset value adjustment on completion.
In return ONIC Holding will acquire a 20.03% stake in RSA Oman. The transaction will create the largest insurance group in Oman by net written premium.
Paul Holmes, CEO of RSA Middle East, commented, “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 Holding by aligning with an international player in the insurance sector. We believe that this alliance will enhance value to ONIC Holding’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 shareholders of RSA Oman will be RSA Middle East, ONIC Holding, WJ Towell Company, OHI and Mr. Prem Mankand.
Completion of the transaction is subject to shareholder and regulatory approvals.
-ENDS
For further information, contact:
Vidya Veerapandian
Marketing & Communications Manager- KSA & Bahrain
Email: Vidya.v@bh.rsagroup.com
Tel: +973 17568367
Fax: +973 17582879
Notes to editors:
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 50.01% of RSA Middle East, which in turn owns a controlling interest in RSA Oman, the acquiring entity. Following the transaction the 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 WJ Towell & Company, OHI and Mr. Prem Mankad.
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), is the leading financial services conglomerate in Oman with diversified holdings.
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 (US$65m) and net written premiums were OMR 16m (US$42m).
The consideration and Al Ahlia’s premiums were converted using the exchange rate of US$1 : OMR0.385