Riyadh – Mubasher: Mediterranean & Gulf Insurance & Reinsurance Co (MedGulf) has denied news that it was considering selling its business.

Selling assets is not among our strategic options, MedGulf said in a bourse filing on Tuesday. It also denied news claiming it appointed the investment banking arm of Banque Saudi Fransi (BSF) in this regard.

On Sunday, news agency Bloomberg reported citing unnamed sources as saying that the Saudi-listed insurer was considering putting itself up for sale and that it had appointed BSF to evaluate its strategic options.

MedGulf last reported SAR 92.97 million in losses in the first three months of 2017 against SAR 13.76 million in profits in the corresponding period the year before.

Several Saudi insurance companies have resorted to mergers recently. Although mergers were previously considered unorthodox in the Saudi market, their numbers are forecast to rise on the back of the growing heated competition and the increase in firms’ accumulated losses.

By 12:09 pm Saudi time on Tuesday, MedGulf’s stock fell 0.37% to SAR 15.95.

Bloomberg also reported that the Riyadh-based insurer’s stock has dropped by 41% since the start of 2017.