Alinma Bank finalizes acquisition of Tokyo Marine’s stake in Arabian Shield ins

Alinma Bank has finalized the acquisition of a 5.75% stake in Arabian Shield Cooperative Ins. in a SAR 81 mn transaction, it said in a disclosure to Tadawul yesterday, bringing Alinma’s stake to 11.5%. The selling party was from Tokio Marine & Nichido Fire Ins.

The rationale: Alinma said the acquisition will help it “expand its footprint through diversifying its investments,” according to the disclosure. Tokio Marine said last month that its decision to divest is part of a strategy to improve its capital efficiency and diversify investments. Tokio Marine had struck an agreement with Arabian Shield to see the company “continue serving Japanese clients” in Saudi Arabia.

Background: Tokio Marine and PIF-backed Alinma Bank established a JV dubbed Alinma Tokio Marine Company in 2012, which was then merged with Arabian Shield in November 2023. Tokio Marine & Nichido Fire is the non-life ins company of the global player Tokio Marine Holding.