Affin Holdings to up stake in insurer

Financial services firm to up stake in insurance JV with international giant

Affin Holdings to up stake in insurer

Insurance News

By Jordan Lynn

Financial services firm Affin Holdings is set to finalise the purchase of an additional 16% stake in AXA Affin General Insurance (AAGI) in Malaysia.

It was announced earlier this year that the Central Bank of Malaysia, Bank Negara Malaysia, had no objection to the financial services firm upping its stake in the insurer as a negotiation period was extended by six months.

Upon completion of this deal, Affin will hold a 50.51% stake in AAGI.

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“AAGI is an important business for us,” Affin group chief executive officer, Kamarul Ariffin, said after Affin’s annual general meeting last week, according to The New Strait Times.

“We see value in it and we hope to conclude the deal.”

Ariffin added that the firm hopes to complete the acquisition before August 05, when the extended negotiating period ends.

AAGI ended financial year 2016 with a pre-tax profit of RM181.2m (US$41m), a marked increase on the previous year.

Gross written premium for the firm rose 10.5% as motor insurance makes up the bulk of AAGI book at 52.5% and saw growth of 9.5% last year.

Affin is seeking to acquire a stake currently held by Felda Global in the joint venture backed by global powerhouse AXA.

Related stories:
AXA launches new global team
Malaysian central bank extends deadline for purchase of insurance stake

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