AXA has entered into an agreement with Generali to sell its insurance operations in Malaysia, which includes its 49.99% shareholding in AXA Affin General Insurance (AAGI) and 49% shareholding in AXA Affin Life Insurance (AALI). The transaction is subject to closing conditions, including the receipt of regulatory approvals, and is expected to close by Q2 2022.
“This is an important milestone for us. As a company, we have come a long way and have taken many leadership positions in many areas,” said Emmanuel Nivet, country manager of AXA Affin Malaysia.
“We are positive that our operations in Malaysia will benefit from Generali’s strong presence and expertise to bring it to greater heights. This transaction will not affect our existing responsibilities to policyholders and our relationship with business partners. It is business as usual for us, and we remain committed to deliver the best insurance solutions and services to protect our customers.”
Rob Leonardi, regional officer of Generali Asia said, “This is an exciting time for Generali in Malaysia and for our growth strategy in Asia.“
“Over the last five years, we have enjoyed working together with our business partner to reshape MPI Generali and now we can further optimise our strategic position, secure economies of scale for more efficient operations and deliver even greater value for our 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 strengthen our business in this important market and look forward to working with our customers, employees, agents, partners and distributors on this journey.”
“We are very excited to be taking the MergerCo into the top three positions in the general insurance business arena, and I look forward to growing our businesses together. As a shareholder of both the insurance entities, we hope to create synergistic growth opportunities for AAGI and AALI and reinforce our commitment to offering holistic financial solutions to our customers and enhance the overall customer experience through the future bancassurance partnership with Generali,” added Datuk Wan Razly Abdullah Bin Wan Ali, president and group CEO of Affin.
Currently, AXA’s presence in Malaysia is comprised of two joint ventures with Affin Bank Berhad – AAGI (49.99% owned by AXA, 49.95% by Affin Bank), and AALI (49% owned by AXA, 51% by Affin Bank).
AAGI is currently fifth in the Malaysian P&C insurance market with a 7.9% market share, while AALI ranks 11th in the Malaysian Life insurance market.