KUALA LUMPUR: Affin Bank Bhd and Generali Asia N.V. (Generali) have agreed to form a joint venture to develop their life and general insurance businesses in Malaysia.
In a statement today, Affin said it has agreed to dispose of 21.00 per cent equity interest in AXA Affin Life Insurance Bhd and approximately 2.95 per cent equity interest in AXA Affin General Insurance Bhd (AAGI) to Generali.
In addition, Affin has also agreed for AAGI to acquire certain assets and liabilities of MPI Generali Insurans Bhd (MPIG) via a business transfer (AAGI Merger) to create an enlarged company (MergeCo).
"The entry of Generali as the new major shareholder of MergeCo will enable Affin to monetise part of its investments in the insurance businesses, the proceeds of which will be reallocated to fund growth in its core banking business.
"From the AAGI Merger, there will be enhanced brand equity for Affin via ownership of a larger scale general insurer in Malaysia,” said Affin.
According to Affin, MergeCo is expected to be the second biggest general insurance provider with an estimated gross written premium (GWP) of more than RM2.0 billion and total assets of more than RM6.0 billion.
"We believe that with the new partnership with Generali, being one of the largest global insurance groups, both insurance entities will be poised to scale greater heights,” said Affin president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali.
Meanwhile, Generali Asia regional officer Rob Leonardi said over the last five years, the company has been working together with its business partner to reshape MPIG, and now they can further optimise its strategic position and secure economies of scale to deliver greater value for its customers.
"By pooling Affin’s bancassurance channel with Generali’s expertise in life and general insurance, our customers will have access to a more extensive range of products and services.
"We have ambitions to further transform and grow our business in this important market and look forward to working with our customers, agents, partners and distributors on that journey,” he said. - Bernama