MITSUI Sumitomo Insurance (M) Bhd, which will be officially merged with Aviva Insurance Bhd on April 1 next year, expects the merged unit to have gross written premiums in excess of RM700mil as of that date, making it one of the top three players in the non-motor business.
Chief executive officer Fabian Wong said Mitsui Sumitomo Insurance Co Ltd of Japan completed the acquisition of 51% of the issued and paid-up share capital of Aviva from CGU International Insurance Plc at the end of last month. CGU International is the parent company of Aviva.
Aviva is now effectively a subsidiary of Mitsui Sumitomo Insurance Co, which also has a 47.8% shareholding in Mitsui Sumitomo Malaysia.
For the fiscal year ending Dec 31, both the entities would have combined gross premiums exceeding RM660mil.
Wong said merging with with Aviva would further strengthen the company's marine cargo, fire and other non-motor miscellaneous business.
“Currently, we are the leading marine cargo insurer in Malaysia with about 16% market share and hope to enhance our share to 25% once we are merged with Aviva.
“In the fire business, Mitsui Sumitomo is now among the top five and Aviva is the second largest; we hope to be at the top spot once we are fully merged,'' he told StarBiz in an interview in Kuala Lumpur.
Wong said the integration would also result in a stronger and quality agency force as well as the expansion of branches. Mitsui Sumitomo currently has an active agency force of about 500 while Aviva has more than 1,000.
He said Mitsui Sumitomo's presence in East Malaysia would also be further enhanced as the company could capitalise on Aviva’s existing branches in Sabah and Sarawak to further penetrate the markets there.
Last month, Mitsui Sumitomo Insurance Co received the General Insurance Company of the Year award as the most active non-life insurance company in the Asian insurance market last year, based on the spate of acquisitions made by the group in Asia last year.
These include equity participation in Asia Insurance (Cambodia) Ltd, acquisition of the entire Asian non-life insurance operations of Aviva Plc, the establishment of Cholamandalam MS Risk Services Limited (a risk management company in India) and the acquisition of Mingtai Fire & Marine Insurance in Taiwan.
Wong said the group's corporate vision for 2010, among others, was to further boost its Asian operations.
To this end, it expects its operations outside Japan to contribute about 20% of the group's total business by 2010 from the current 14%.
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