AXA announced today that it has entered into an agreement with MPI Generali to sell its insurance operations in Malaysia, which include its 49.99% shareholding in AXA Affin General Insurance and 49% shareholding in AXA Affin Life Insurance.
Under the terms of the agreement, AXA will sell its ownership in AAGI and AALI for total cash proceeds of RM 688 million. The transaction is subject to closing conditions, including the receipt of regulatory approvals, and is expected to close by 2Q 2022.
- Generali has also submitted application to the local regulator in order to acquire the remaining shares of MPI Generali Insurans Berhad held by its Malaysian joint venture partner, Multi-Purpose Capital Holdings Berhad. The transactions are subject to the approval of the Malaysian Minister of Finance and the Central Bank of Malaysia.
- As a result of the transactions, Generali will operate in Malaysia through two companies – one in the P&C segment and the other in the Life segment. In the P&C segment, Generali plans to merge the businesses of MPI Generali with AXA Affin General Insurance. Once the transactions are completed, Generali will hold 70% in both the Life and P&C entities, which will trade under the Generali name. Affin Bank will hold the remaining 30%.
- Established in 1975, Affin Bank is the tenth largest bank in the country with over 110 branches catering to both retail and corporate customers. Its activities focus on commercial, Islamic and investment banking services, money broking, asset management and underwriting of Life and General insurance business.
- All parties are working together to obtain the required regulatory approvals. Rob Leonardi, Regional Officer, Generali Asia said: “This is an exciting time for Generali in Malaysia and for our growth strategy in Asia, we have ambitions to further transform and strengthen our business in this important market and look forward to working with our customers, employees, agents, partners and distributors on this journey.”
- AXA Affin General Insurance is among the largest general insurance players in Malaysia, with an extensive distribution network of over 5,000 active agents across the country. The company closed 2020 with RM 1.4 billion of gross written premiums while AXA Affin Life Insurance, founded in 2006, earned an Annual Premium Equivalent of RM 120 million.