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… and IAG opts for general over life insurance in Malaysia

IAG is quitting the Malaysian life sector to focus on general insurance.

The insurer holds a 30% stake in AMMB Holdings’ composite subsidiary AmAssurance, and says it’s working closely with its local venture partner to split the composite licence into separate life and general insurance licences.

IAG then intends to transfer AmAssurance’s GI business to AmG Insurance, which was incorporated earlier this year, before selling AmAssurance’s life business.

Its ultimate aim is to up its stake in AmG to 49%, in line with its overall strategy of focusing on general insurance in key markets such as Malaysia.

IAG Senior Adviser, Group Corporate Affairs Yves Noldus could not confirm a timeframe for purchasing the 49% stake, which is the maximum currently allowed by local authorities.

“This process is subject to various regulatory and court approvals, which of course take time,” he said.

The Malaysian insurance market was worth $US2.7 billion ($2.9 billion) in gross written premium in 2006, according to Swiss Re data.