Saudi insurers need mergers and restructuring
Wednesday, 02 17 2016, Category: Insurance and Reinsurance, Country: Saudi Arabia
Analysts suggested a number of solutions to the problems facing the Saudi insurance sector. A possible solution is merging different insurers in order to create new entities that can compete. In addition, a second solution is restructuring which can only be achieved under some conditions. Mergers should be achieved with international large companies or with companies that have an added value in the new entity.
The Saudi insurance sector witnessed lately drastic changes given the increases in capital, decreases in capital, or capital increases that were followed by losses and returned those companies to accumulated losses exceeding 50% of capital subsequent to the capital increases.
Source: Mubasher Info