RIYADH: Saudi Arabia’s two listed insurers, Amana Cooperative Insurance Co. and Allied Cooperative Insurance Group, are exploring a potential merger.

Both parties announced in separate stock exchange filings that they entered into a memorandum of understanding for the merger, which will expire a year from now.

Based on the terms of the MoU, the method used for valuation will be based on the equity book value.

The proposed transaction is subject to the completion of the due diligence, final agreements, and obtaining the necessary regulatory approvals, they said.