Malaysia: Generali to acquire AXA Affin and become second largest general insurer
Source: Asia Insurance Review | Jul 2021
Generali has agreed to purchase the majority of shares held by AXA and Affin as part of a joint venture, while also submitting an application to the local regulator to acquire the remaining shares of MPI Generali Insurans held by its Malaysian joint venture partner, Multi-Purpose Capital.
The total consideration for the combined transactions is of MYR1.29bn ($310m) subject to closing adjustments.
Following the transaction, Generali will operate in Malaysia through two companies – one in the P&C segment and the other in the Life segment. In the P&C segment, Generali plans to merge the businesses of MPI Generali with AXA Affin General Insurance. Once the transactions are completed, 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%.
The acquisitions will position Generali as one of the leading insurers in the Malaysian market, creating the second largest P&C insurer by market share, while also entering the country’s life insurance segment. A