Generali signed an agreement to acquire the majority of the shares held by AXIS e affine in two joint ventures active in Malaysia: AXA Affin General Insurance Berhad (49,99% by AXA and 3% by Affin and other minority shareholders) and AXA Affin Life Insurance Berhad (49% by AXA and 21% by Affin).
Il Leone has also asked the local authorities to be able to acquire the remaining stake in MPI Generali Insurans Berhad (MPI Generali) from Multi-Purpose Capital Holdings Berhad (MPHB Capital), a joint venture partner in Malaysia.
Transactions are subject to the approval of the Malaysian Ministry of Finance and the Central Bank of Malaysia.
The cost of these operations for Generali is equal to 262 million euro, but the price is subject to adjustments at closing. The estimated impact on the Group's Solvency Ratio is approximately -3,5 pp
Following the transactions, Generali will operate in Malaysia through two companies, one active in the P&C segment and the other in the Life segment. In P&C, Generali intends to merge the activities of MPI Generali with AXA Affin General Insurance. Once the agreements are completed, the Group will hold 70% of both companies, Life and Non-Life, which will operate under the Generali brand. Affin Bank will hold the remaining 30%.
Thanks to the acquisition, Generali will create the second Non-Life operator by market share and will enter the Life segment of the country for the first time.
The Group will enter into an exclusive bancassurance agreement with Affin Bank for the sale of conventional products in the Non-Life and Life classes.
Founded in 1975, Affin Bank is the tenth largest bank in the country with over 110 branches and caters to both retail and corporate clients. It is focused on commercial, investment banking and Islamic finance, brokerage, asset management and underwriting of Life and Non-Life policies.
