Fairfax unit to buy 39% of Gulf Insurance Co.

KUWAIT CITY—Fairfax Middle East Ltd., a subsidiary of Toronto, Canada-based Fairfax Financial Holdings Ltd., has agreed to buy 39.2% of Gulf Insurance Co. from Kuwait Projects Co. for $208.6 million.

The transaction, expected to close shortly, will bring Fairfax’s stake in GIC to about 41%.

GIC writes property/casualty insurance in accordance with Islamic takaful principles across the Middle East and North Africa.

“We are very pleased to be partnering with such a highly regarded organization as KIPCO in continuing to build the leading insurer in the Middle East and North African region,” Prem Watsa, chairman and CEO of Fairfax, said in a statement.

“We look forward to working with the strong team at GIC,” he added.