Saudi Re completes sales of Probitas to Aviva
Saudi Re has completed the sale of its 49.9% stake in Bermuda-based Probitas Holdings for $159 million.
The Riyadh-based company announced on the Tadawul stock exchange website that the deal would support its growth and financial position, with a positive impact on its financial statements in the third quarter of the 2024 financial year.
It noted that the book value of the asset as of the first quarter of 2024 was $52 million.
Aviva said in March it had bought Probitas Holdings and its subsidiaries for $306 million, including its fully-integrated Lloyd’s platform, encompassing its corporate member, managing agent, international distribution entities and tenancy rights to Syndicate 1492.
Aviva, which initially exited Lloyd’s following the CGU and Norwich Union merger in 2000, said its latest deal “significantly expands” market opportunity for Aviva’s Global Corporate & Specialty (GCS) business. The transaction is in line with Aviva’s strategy of executing bolt-on acquisitions of “capital-light” businesses in its core markets to drive growth.
Amanda Blanc, group chief executive officer of Aviva, said in March: “This acquisition is another step in our strategy to invest in Aviva’s future profitable growth. Aviva’s presence in the Lloyd’s market opens up new opportunities to accelerate growth in our capital-light General Insurance business.”
Probitas, founded by Ash Bathia in 2013, will continue to operate under its own brand and under the same management team.
“This transaction aims to enhance the company’s competitive position and financial position, enabling it to redirect investments to develop growth opportunities in both local and international markets,” said Ahmad Al-Jabr, acting CEO of Saudi Re.
“The transaction offered attractive terms, and the proceeds from the sale will strengthen the company’s capital base and increase its solvency margin. This will create significant value for shareholders, generating a return more than five times the initial investment,” Al-Jabr added.
The transaction will see Aviva, the UK's leading diversified insurer, acquire 100% of Probitas and marks its return to the Lloyd’s market.
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