Business

BlueFive Capital has signed a definitive share subscription agreement with Gulf General Cooperative Insurance Company (GGI), marking a major step in the firm’s strategy to build a leading insurance platform originating from the Middle East.

The agreement outlines a comprehensive share capital restructuring plan aimed at strengthening GGI’s financial position and supporting its long-term growth strategy in Saudi Arabia’s insurance sector.

Under the agreement, GGI will first reduce its share capital by SAR 176 million, decreasing it from SAR 300 million to SAR 124 million through the cancellation of 17.6 million shares. The move is intended to eliminate a significant portion of the company’s accumulated losses.

Following the capital reduction, GGI will increase its share capital back to SAR 300 million through the issuance of 17.6 million new shares.

As part of the restructuring:

• 12.6 million new shares, representing 42 per cent of GGI after restructuring, will be issued to BlueFive Capital or an affiliated entity.
• 5 million new shares will be allocated to GGI’s substantial shareholders to capitalise a previously provided SAR 50 million loan.

BlueFive Capital said the investment positions GGI as the foundation of its broader ambition to create the first global insurance leader emerging from the Middle East.

The strategy focuses on consolidating under-scaled insurance and reinsurance businesses while pursuing growth opportunities across the GCC and other high-growth markets. The platform will also emphasise digital transformation, operational efficiency, technical capability enhancement, and strategic mergers and acquisitions.

Hazem Ben-Gacem said the proposed investment is designed to reset GGI’s financial position and establish a clear path for sustainable growth.

He added that Saudi Arabia’s insurance market presents significant opportunities, and that the partnership aims to strengthen GGI’s market position while creating long-term value for shareholders and policyholders.

Mazen Hani Zaki Altamimi described the agreement as a pivotal milestone for GGI, stating that the restructuring and strategic investment offer the strongest pathway toward financial stability and future expansion.

He also acknowledged the support provided by Saudi Arabia’s Insurance Authority and Capital Market Authority throughout the process.

BlueFive Capital is being advised by SNB Capital and A&O Shearman, while GIB Capital and AS&H Clifford Chance are advising GGI.

The transaction remains subject to regulatory approvals, shareholder approvals, and the fulfilment of conditions outlined in the share subscription agreement.

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