Gulf Union Co-operative Insurance Co. decided to initiate talks regarding a potential merger with Al Ahlia Insurance Co. for Cooperative Insurance, Argaam reported March 1.

The Saudi Arabia-listed insurers will discuss signing a nonbinding preliminary agreement that will lay out the proposed merger plan and timeline within the next 12 months, Argaam reported. A potential merger will be subject to approvals by regulators and shareholders of both insurers.

Gulf Union will name a financial adviser by March 16, Argaam said.