IAG increases stake in Malaysian insurer
IAG will increase its stake in the general insurance side of Malaysian business AmAssurance from 30% to the maximum foreign investment limit of 49%, the company announced today.
In line with its stated focus on general insurance markets in Asia, IAG will sell its 30% stake in AmAssurance’s life insurance division, with the composite insurer to be split into general and life units.
The business will be renamed AmG Insurance, and continue to trade using the AmAssurance brand. The restructure will deliver a net profit of around $35 million on the sale of the life business, and IAG will increase its investment in Malaysia by about $20 million.
The Australian company acquired an initial stake in AmAssurance two years ago. An IAG spokesman told insuranceNEWS.com.au an increase in the investment has been planned for some time.
IAG CEO Asia Justin Breheny says he is pleased with the performance of the business.
“Since acquiring our initial 30% holding in the Malaysian joint venture in 2006, we have worked closely with our joint venture partner, AmBank Group, to add value through the value of our specialist insurance skills,” he said.
AmAssurance increased gross written premium by 15% in the last financial year, and Mr Breheny says he expects continued growth of more than 10%.
“We’ll do this through further penetration of the joint venture’s distribution network and diversification of its product portfolio,” he said.
The restructure is expected to be completed next month, having gained regulator approval.
AmG is set to become a top three player in the Malaysian general insurance market following an earlier announcement that it has signed an initial agreement to acquire the general insurance business of Malaysian Assurance Alliance (MAA).
AmG will also take a 4.9% interest in the Islamic takaful insurance business of MAA.
Both deals are expected to be completed next year.
In line with its stated focus on general insurance markets in Asia, IAG will sell its 30% stake in AmAssurance’s life insurance division, with the composite insurer to be split into general and life units.
The business will be renamed AmG Insurance, and continue to trade using the AmAssurance brand. The restructure will deliver a net profit of around $35 million on the sale of the life business, and IAG will increase its investment in Malaysia by about $20 million.
The Australian company acquired an initial stake in AmAssurance two years ago. An IAG spokesman told insuranceNEWS.com.au an increase in the investment has been planned for some time.
IAG CEO Asia Justin Breheny says he is pleased with the performance of the business.
“Since acquiring our initial 30% holding in the Malaysian joint venture in 2006, we have worked closely with our joint venture partner, AmBank Group, to add value through the value of our specialist insurance skills,” he said.
AmAssurance increased gross written premium by 15% in the last financial year, and Mr Breheny says he expects continued growth of more than 10%.
“We’ll do this through further penetration of the joint venture’s distribution network and diversification of its product portfolio,” he said.
The restructure is expected to be completed next month, having gained regulator approval.
AmG is set to become a top three player in the Malaysian general insurance market following an earlier announcement that it has signed an initial agreement to acquire the general insurance business of Malaysian Assurance Alliance (MAA).
AmG will also take a 4.9% interest in the Islamic takaful insurance business of MAA.
Both deals are expected to be completed next year.