The Saudi Central Bank's governor, Dr. Fahad Abdullah Al-Mubarak, Honored the merged insurance companies honored the two board chairs of Al-Jazirah Takaful Tawuni and Solidarity Saudi Takaful after their recent merger, in the presence of the CEO of the newly formed company. This the third merger in the insurance sector was preceded by the merger of Wala cooperative insurance and MetLife and the American international Group and the Arab National Bank on one hand and and the Gulf Union and Al-Ahlia on another.

                Al-Mubarak explained that such merges reflect a positive indication that the plans and targets of the Central Bank are moving on the track toward the right direction. Not to mention that all efforts, which were made to develop the insurance sector and raise its operational efficiency and financial solvency by encouraging capital increase resulted in three mergers within a short period of time, nearly a year. Whereas mergers and acquisition are among the most important utilized tool.

                Al-Mubarak stated that the central bank will continue to encourage the insurance companies for further mergers and acquisitions in order to realize goals and programs of the Financial Sector Development Program as part of the Kingdom's Vision 2030.  The insurance sector is one of the most important sector for its role in bearing the burden of accepting risks facing the national economy and contributing to its stability and growth. In this regard, Al-Mubrak indicated that initiatives by the Financial Sector Development Program included an ambitious initiative to encourage and facilitate mergers within the insurance sector for the aim of achieving sustainability, stability, durability and growth, as well as increasing its contribution to the GDP by diversifying its products and digitizing it and enhancing innovation and competition in the sector.

                In conclusion, the Governor renewed his encouragement and urge to the insurance companies for further mergers and acquisitions in order to benefit from the many positive advantages following the merger, of which the most important is boosting competition within the sector, creating innovative insurance products and services, improving operational efficiency, reducing expenditures, attracting and maintaining qualified cadres and other effects that positively influence the national economy, financial sector, the insurance sector, the insured and the beneficiaries of the insurance coverage.