Generali has completed the acquisition of the majority stakes in the AXA’s property/casualty and life businesses in Malaysia, which will position it as a top-tier general (or P/C) insurer in the country, in line with its strategy to strengthen its leadership position in high potential markets.
Generali has acquired a 70% stake in the AXA Affin Life Insurance joint venture (49% from AXA and 21% from Affin) and approximately a 53% stake in the AXA Affin General Insurance joint venture (49.99% from AXA and 3% from Affin).
The total consideration for the combined transactions is €262 million ($261.2 million) in the deal that was first announced in June 2022.
Generali has also increased its current 49% stake in MPI Generali Insurans Berhad to 100%, acquiring the shares held by its Malaysian joint venture partner, Multi-Purpose Capital Holdings Berhad (MPHB Capital).
Generali plans to integrate the businesses of MPI Generali and AXA Affin Generali Insurance and on completion will hold 70% of the combined business. Affin Bank will hold 30% of both the Life and General Insurance businesses.
All entities will continue to operate under their current brands until the single unified brand “Generali Malaysia” is launched in early 2023.
The acquisitions position Generali as one of the leading insurers in the Malaysian market and will allow Generali to access the country’s life insurance segment. Generali said it has also entered into an exclusive bancassurance agreement with Affin Bank for the sale of conventional General and Life insurance products.
“The transactions are fully aligned with Generali’s ‘Lifetime Partner 24: Driving Growth’ strategy to strengthen our leadership position in high potential markets,” commented Jaime Anchústegui Melgarejo, CEO International of Generali. “We are now one of the largest General Insurance players in Malaysia – a country with strong potential for further growth thanks to economic development and its current low-insurance penetration.”
“This is a unique opportunity to combine our talents and resources to create a unified brand that will have the scale, breadth, and capabilities to compete more effectively and profitably in the Malaysian insurance market, and provide greater value for our customers,” said Rob Leonardi, regional officer, Generali Asia.
HSBC acted as exclusive financial adviser to Generali on the transactions. The law firm Wong & Partners was the legal adviser.
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