Tokio Marine Holdings concludes stake sale in Arabian Shield Cooperative Insurance Company
Tokio Marine Holdings concludes stake sale in Arabian Shield Cooperative Insurance Company | Insurance Business Asia
Insurance News
Tokio Marine Holdings concludes stake sale in Arabian Shield Cooperative Insurance Company
Deal aligns with plans to optimise portfolio amid evolving market dynamics
Insurance News
By
Roxanne Libatique
Tokio Marine Holdings has completed the transaction involving the sale of its stake in Arabian Shield Cooperative Insurance Company (AS), as announced on Jan. 17.
In a release, Tokio Marine Holdings confirmed that it has successfully finalised the sale of all its shares in AS, a significant player in both the life and non-life insurance sectors in Saudi Arabia, to Alinma Bank.
The successful completion of this sale underscores Tokio Marine Holdings’ plans to optimise its portfolio and strategically manage its investments in alignment with evolving market dynamics.
Background
The roots of the transaction can be traced back to 2012 when TMNF (Tokio Marine & Nichido Fire Insurance Co., Ltd.) forged a partnership with Alinma Bank to establish Alinma Tokio Marine Company (ATMC), with TMNF holding a 28.75% ownership stake. This joint venture aimed to bolster the life and non-life insurance business within the Saudi Arabian market.
Subsequently, following discussions with Alinma Bank regarding the future direction of ATMC’s business, ATMC merged with AS in November 2023. Currently, TMNF holds a 5.75% ownership stake in AS.
Purpose of sale
The decision to divest its entire stake in AS is in line with TMNF’s strategic objectives of enhancing capital efficiency and diversifying risks.
Despite the sale, a collaborative framework has been established with AS to ensure the continued provision of services to Japanese clients operating in Saudi Arabia.
It is anticipated that the sale to Alinma Bank will not significantly impact the overall business performance of Tokio Marine Holdings.
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