Oman’s market regulator Capital Market Authority (CMA) has approved the merger of Muscat Insurance Company and Muscat Life Assurance Company with its parent company Muscat National Holding Company (MNHC).
Muscat Insurance Company and Muscat Life Assurance are fully-owned subsidiaries of Muscat National Holding, said a company statement.
On completion of both mergers, MNHC will be the surviving entity and commercial registration of both subsidiaries will cease. CMA‘s approval is provided on the basis that both mergers are approved by the shareholders of MNHC at an Extraordinary General Meeting. Consequently, MNHC has called an extraordinary general meeting of its shareholders on July 27.
The parent company MNHC, which is already a public shareholding company, will change its commercial registration to a composite insurance company. Muscat Insurance Company and Muscat Life Assurance Company had the unique advantage to go public by the above merger, without floating Initial Public Offerings.
Muscat Insurance Company is one of the oldest insurance companies of Oman established in 1995 as a public share holding company. In 1999, it was restructured with MNHC as the parent and MIC and MLAC as the two fully-owned subsidiaries.
“Over the last 23 years of existence in the market, we have grown in multiples with customer confidence and trust. Now we are present in almost all major locations in the Sultanate. The new structure of the company will certainly add momentum in our growth plans,” said Philip K Philip, chief executive officer of MNHC.
“Currently, we are rated B+ with stable outlook by A. M. Best. The merged entity is expected to have an even better rating.”