Riyadh – Arabia Insurance Cooperative Company and United Cooperative Assurance Company have agreed to explore a potential merger between the two firms. The non-binding memorandum of understanding (MoU), signed on June 19, 2025, outlines a possible merger through a swap ratio transaction, as disclosed in two bourse filings.
The agreement will remain in effect for up to 12 months or until a definitive merger agreement is reached. It can be extended by mutual consent or terminated by either party with written notice, without incurring liability. As part of the proposed transaction, both companies will conduct comprehensive due diligence, including technical, financial, tax, legal, and actuarial assessments, according to the terms and conditions outlined.
The merger is contingent upon obtaining necessary regulatory approvals from key authorities, including the Insurance Authority (IA), the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and the General Authority for Competition. Additionally, the deal must be approved by the extraordinary general meeting (EGM) of both companies.
