Adamjee Insurance to acquire SGIC

Company looking to obtain 3.6m ordinary shares.

KARACHI: The board of directors of Adamjee Insurance Company is going to acquire 3.6 million ordinary shares of Rs10 each of Security General Insurance Company (SGIC), constituting 5.4% of the total issued and paid-up share capital of SGIC, at a maximum price of Rs95 per share, according to a notice sent to the Karachi Stock Exchange (KSE) on Monday.

The acquisition is subject to the approval of Adamjee Insurance Company’s shareholders, it added. Premium written by Adamjee Insurance Company in the first quarter of 2014 amounted to Rs2.4 billion, which was the third highest in the non-life insurance industry. Its net profit for the quarter was Rs721.8 million, highest among all general insurers operating in the country.

SGIC’s after-tax profit for the last quarter was Rs235.8 million. It has a meagre 1.3% share in the non-life insurance industry in terms of premiums written. Adamjee Insurance Company, on the contrary, had a share of 16.2% at the end of January-March quarter in terms of premiums written.

Through a separate notice issued on Monday, KM Enterprises informed members of the stock exchange about its acquisition of 20.8 million ordinary shares of PICIC Insurance, representing 59.4% of its issued and paid-up share capital, through two share purchase and procurement agreements with NIB Bank and one Tariq Iqbal Khan.

Published in The Express Tribune, June 10^th, 2014.

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