Affin Bank Bhd has obtained approval from the Ministry of Finance (MoF) to dispose of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95% stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia NV.
Affin Bank currently owns 51% in AALI and 49.95% in AAGI. Bank Negara Malaysia (BNM) had informed Affin Bank of the approval on May 6
In a statement on Monday, Affin Bank said it will enter into a share sale agreement with Generali Asia for the AALI and AAGI disposals, subject to the satisfaction of the remaining signing conditions under the implementation agreement and further announcements will be made accordingly.
“We see synergistic growth opportunities for AAGI and AALI with this joint venture with Generali and the ability to enhance our financial solutions and products offerings to our customers through the future bancassurance partnership with Generali,” said Affin Bank president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali.
Prior to this, both Affin and Generali had on June 22 last year entered into an implementation agreement for the AALI and AAGI disposals.
In addition, Affin Bank has also agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI whereby AAGI will acquire certain assets and liabilities of MPIG via a business transfer to create an enlarged company, subject to the approval of BNM.
Following that, a new local company (Newco) will be incorporated to hold all of the shares in AALI and AAGI (MergeCo). Affin Bank will, in turn, be holding 30% equity interest in the Newco, with Generali holding the remaining 70%.
Consequently, Affin Bank is required by BNM to make the necessary submission for its shareholding in the Newco to BNM within one month from May 6, 2022.