Chubb in talks to merge Chubb Arabia with AlAhli Takaful Company

Property/casualty insurer Chubb's Saudi Arabian division, Chubb Arabia Cooperative Insurance Company, has entered into preliminary discussions with AlAhli Takaful Company to explore the possibility of merging the two companies.

AlAhli said in a stock exchange filing on Wednesday (Feb 19) that if a merger discussion is agreed, both companies will sign a non-binding Memorandum of Understanding (the MoU) to evaluate a potential merger between the two companies, but it will still be necessary to obtain official regulatory approvals before completing the deal.

The company, however, noted that the entry into these discussions does not mean that a merger will happen between the two companies, but only that the potential for a mutually beneficial arrangement for both companies’ shareholders is being explored.