Affin Bank gains nod to dispose shares in AXA joint ventures

New owner to gain larger foothold in Malaysian market

Affin Bank gains nod to dispose shares in AXA joint ventures

Insurance News

By Gabriel Olano

Affin Bank has received approval from Malaysia’s Ministry of Finance (MoF) to sell its holdings of 21% in AXA Affin Life Insurance (AALI) and 2.95% in AXA Affin General Insurance (AAGI) to Generali Asia.

Affin Bank currently holds 51% of AALI and 49.95% of AAGI.

In a stock exchange filing, the bank said it will enter into a share sale agreement with Generali Asia for its shares in AALI and AAGI, subject to the satisfaction of the remaining signing conditions under the implementation agreement.

“We see synergistic growth opportunities for AAGI and AALI with this joint venture with Generali and the ability to enhance our financial solutions and products offerings to our customers through the future bancassurance partnership with Generali,” said Affin Bank president and CEO Datuk Wan Razly Abdullah Wan Ali.

In June last year, Generali and Affin agreed to take control of the joint ventures, as well as buy out MPI Generali, its joint venture with Multi-Purpose Capital Holdings. Upon approval of regulators, AAGI will be merged with MPI Generali, which will greatly expand Generali’s business in the Malaysian general insurance market.

A new local company will be formed to hold the shares in AALI and the resulting merged general insurance business. Affin Bank will hold 30% in the new company, while Generali holds the remaining 70%.

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