It’s no industry secret that IAG wants to boost its Asian acquisition portfolio, and yesterday the group announced it had taken a step towards achieving its goal by agreeing to acquire a 30% strategic interest in Malaysian insurer AmAssurance Berhad for $69 million.

IAG CEO Michael Hawker says the deal – which is subject to regulatory approval – is part of the group’s strategy to expand its Malaysian interests. The deal is the insurer’s second Asian investment this year.

Under the deal, IAG would be able to increase its ownership to a maximum of 49%.

“The Malaysian insurance industry is one of its [AmAssurance’s] most rapidly growing sectors, with premium growth averaging around 10% over the past 10 years and accelerating regulatory reform, making the market highly attractive for overseas investors,” he said. “Building an Asian foothold is in line with the group’s goal to supplement our existing businesses in our home markets of Australia and New Zealand.”

AmAssurance is part of the AmBank Group – the third largest retail-lending bank in Malaysia and the country’s largest motor vehicle lender.

Mr Hawker says while AmAssurance is a strong brand with an extensive distribution network, IAG will strengthen the group with its technical capabilities and underwriting experience.