Malaysian financial services company Affin Holdings Bhd has received the central bank’s approval to acquire an additional 7.07% stake in AXA Affin General Insurance Bhd (AAGI), a joint venture with the France-based global insurer.

Affin said in a stock exchange filing on Monday that the transaction, which has been approved by the Bank Negara Malaysia (BNM), will bring its holdings in AAGI from 37.07% to 44.14%.

In March 2016, BNM allowed Affin to begin negotiations with Felda Marketing Services, AXA Asia and minority shareholders to acquire additional shares in the general insurer. Last month, the deal to acquire a 7.07% equity interest from Felda for MYR99.1 million (US$23.67 million) was finalised and sent to BNM for approval.

In 2016, AAGI posted a pre-tax profit of MYR181.2 million (US$43.28 million), a 57.8% increase from the previous year. The insurer’s annual report said that the growth was due to higher underwriting results and higher investment income from gains made on the sale of its investment.

AAGI ended the year with gross written premium of MYR1.47 billion (US$351 million), which was 10.5% higher than 2015. Motor insurance was credited as the engine behind the business, bringing in 52.5% of total revenue.


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