The Legal and General Group Plc has decided to sell its 50% stake in Legal & General Gulf BSC (LGG), its Bahrain based joint venture with Ahli United Bank BSC (AUB) specializing in the extension of conventional and Sharia compliant life insurance services.
This move comes in the context of other corporate divestitures undertaken by the L&G Group Plc in France, Germany and Egypt to focus its business on identified core markets.
Following completion of the sale, Ahli United Bank BSC (AUB) now holds 100% of LGG’s shares.
Commenting on the transaction, Sanjeev Baijal, AUB Deputy Group CEO – Finance & Strategic Development said: “Securing full ownership of LGG demonstrates AUB’s continued commitment towards providing life insurance and bancassurance services, which represent an integral part of the AUB Group’s product offering.
He further added that “The company will seek to expand its bancassurance distribution network and to further improve its product menu particularly on the Takaful side.”
Peter Drummond, LGG’s Managing Director commented, “We are very encouraged by the closer association with the AUB Group which will facilitate the development of conventional and Sharia compliant business growth opportunities and the achievement of better cost synergies. He confirmed that “all existing client polices and their underlying investment arrangements remain unchanged and that the LGG management and staff will continue to service existing clients and work to develop new business and products.”