Saudi Insurer MedGulf Denies It's Considering Sale of Business

The Mediterranean & Gulf Insurance & Reinsurance Co., a Saudi Arabian insurer known as MedGulf, denied it’s considering putting itself up for sale.

MedGulf isn’t exploring strategic options that could include a potential sale of the company and hasn’t appointed Saudi Fransi Capital to advise on the process, a company spokesman said in an emailed statement on Monday.

Bloomberg reported on Sunday that the company is weighing putting itself up for sale, citing three people familiar with the matter. The report also cited two of the people as saying that MedGulf is working with the investment banking arm of Banque Saudi Fransi to evaluate strategic options.

Some Saudi insurance companies are examining potential mergers to better compete in a crowded market. There are 35 insurance companies listed on the Saudi stock exchange, according to data compiled by Bloomberg.

MedGulf shares rose 0.8 percent on Monday, giving the Riyadh-based insurer a market value of about $427 million.

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