LONDON–(BUSINESSWIRE)–AM Best has placed under review with positive implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of National Life and General Insurance Company SAOG (NLGIC) (Oman).
This Credit Rating (rating) action follows the announcement on 4 April 2022 that NLGIC will acquire 100% shareholding in Royal & Sun Alliance Insurance (Middle East) Limited BSC (c).
NLGIC is expected to execute the transaction in two parts: (i) purchasing 50.00002% shareholding in RSA Middle East from Sun Alliance Insurance Overseas Limited, and (ii) exchanging the remaining shares of RSA Middle East, owned by Saudi shareholders, with newly issued shares of NLGIC. The transaction, which is subject to regulatory approval, would make the Saudi shareholders collectively the second-largest shareholders of NLGIC after Oman International Development and Investment Company SAOG (Oman).
The rating action reflects the positive impact AM Best expects the transaction to have on NLGIC’s business profile. Particularly, the agreement is expected to help the entity reach new markets, expand its product offering and strengthen its position in the Middle East region.
The ratings will remain under review until the transaction is formally completed, which is expected to happen by the third quarter of 2022, and AM Best can assess the definitive impact on NLGIC’s credit fundamentals.
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