The Silicon Review ^Asia

Generali is purchasing majority shares of AXA and Affinin the joint ventures, approximately 53% of AXA Affin General Insurance Berhad (49.99% from AXA and 3% from Affin and minorities) and AXA Affin Life Insurance Berhad (49% from AXA and 21% from Affin), respectively. This will mean that the Italian company will be taking over AXA’s Malaysian business.

The company has further also applied to acquire the remaining shares of MPI GeneraliInsuransBerhad (MPI Generali) held by its Malaysian joint venture partner, Multi-Purpose Capital Holdings Berhad (MPHB Capital).

Genrali will operate in Malaysia through one in the P&C sementaand other in the Life segment. In the P&C segment, Generaliis looking to merge the businesses of MPI Generali with AXA Affin General Insurance. Upon the completion of transaction, Generali will hold 70% in both the Life and P&C entities, which will trade under the Generali name. Affin Bank will hold the remaining 30%.

Jaime AnchústeguiMelgarejo, CEO International, Generali Group, said: “The transactions are fully aligned with Generali’s strategy to strengthen its leadership position in high potential markets, like Malaysia, which represents a very attractive opportunity as it is home to a growing middle-class population and with an insurance penetration rate that is still relatively low compared to other more mature markets in the Asian region.”

These acquisitions will position Genrali as one of the leading insurers in the Malaysian market. Currently, Generali is working with AXA, Affin Bank and MPHB Capital to obtain the required regulatory approvals.