Arab News, Monday, Aug 22, 2022 | Muharram 22, 1444
Allianz Group’s Saudi unit posts 13% profit surge amid potential stake sale
Saudi Arabia: Allianz Saudi Fransi
Cooperative Insurance Co. reported stronger earnings for the first half of 2022,
amid news that its German parent company is planning to sell its stake in the
Saudi unit.
The joint venture between Allianz Group and Banque
Saudi Fransi saw its net profit before Zakat surge 13 percent to SR10 million
($2.7 million), according to a bourse filing
Allianz Saudi Fransi attributed the results to an
increase in net earned premium by 16.2 percent and a reduction in expense ratio.
It was reported by Bloomberg earlier this month
that German-based Allianz Group is working with an advisor to potentially sell
its 51 percent stake in the Saudi unit.
Bloomberg’s unnamed sources, however, made it
clear that deliberations are still in early stages, and Allianz may even decide
to retain the asset.
Shares of Allianz Saudi Fransi have dropped about
44 percent year-to-date and the company’s market value currently stands at SR871
million.