Tokyo (Japan), June 17 (ANI): ORIX Corporation, a leading integrated financial services group of Japan, has announced that it has reached an agreement to acquire 25.7 per cent of issued shares of Bahrain-based Mediterranean and Gulf Insurance and Reinsurance Company (MEDGULF).
Founded in 1980 in Lebanon, MEDGULF is a business group with insurance businesses throughout the Middle East in Saudi Arabia, Lebanon and Jordan and also in the United Kingdom.
ORIX will proceed to obtain the necessary permits in view of investment during this month.
The company believes that insurance demand in the Middle-East is set to expand from a low base in line with economic growth. The penetration rate of insurance with respect to the GDP in the Middle East remains one fifth to the level of developed countries at less than 2 per cent.
ORIX is optimistic about the Middle East market with the transition of compulsory insurance systems from the government to the private sector as a means of reducing government expenditure.
In Saudi Arabia, the government began making it compulsory for all private companies to enroll their employees in health insurance.
Since moving into Oman in 1994, Japan's ORIX has expanded its leasing business in the Middle East along side leading local partner companies in Saudi Arabia, the United Arab Emirates and Kazakhstan.
Through a strategic partnership by capital participation with MEDGULF who has both a strong brand and a high market share in the Middle East, ORIX aims to improve its presence in the Middle East region and diversify its financial service business while capitalising on the growth of insurance markets in the Middle East.
ORIX is fast expanding its global reach by mergers and acquisitions as in February 2013 the company decided to acquire Holland based global asset company Robeco Groep N.V. and make capital participation in the major Mongolian group TenGer financial Group in May this year. (ANI)
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