Riyadh — Arabia Insurance Cooperative Company and United Cooperative Assurance Company have signed a memorandum of understanding (MoU) to explore the possibility of merging their operations.
The non-binding MoU, signed on 19 June 2025, outlines plans for a merger through a share swap transaction, subject to various conditions and due diligence processes, according to disclosures to the bourse.
The agreement will remain valid for up to 12 months, or until a definitive merger agreement is reached. The MoU can be extended by mutual consent or terminated at any time by either party, with written notice and without liability.
Both companies will now conduct comprehensive due diligence in areas such as technical, financial, tax, legal, and actuarial matters, as part of the proposed transaction process.
The merger is contingent on receiving regulatory approvals from multiple authorities, including the Insurance Authority (IA), the Capital Market Authority (CMA), the Saudi Exchange (Tadawul), and the General Authority for Competition. Additionally, the approval of an extraordinary general meeting (EGM) by both companies will be required to proceed with the deal.