Gulf International Services and Doha Insurance Group said they would explore all share merger of Al Koot Insurance and Reinsurance Company (wholly owned subsidiary of GIS) with Doha Insurance Group.
The potential merger is likely to create one of the largest local insurance companies, providing better insurance services in multiple segments as per Qatar National Vision 2030. It would also enhance the growth potentials both domestically and internationally.
The merger is expected to allow capturing major commercial and operational synergies of service-oriented platform and human resources, financial, marketing and management expertise capabilities of both companies, media reports said.
This in turn would lead to value creation for all the stakeholders, including respective shareholders of each company.
Qatar Central Bank has provided in-principle no-objection to both the companies subject to compliance with all necessary provisions according to Qatar Central Bank Law and Regulation of Financial Institutions.
The merger and its structure are subject to the outcome of the relevant due diligence exercises to be conducted by each party, the reports said.