Malaysian investment holding group MAA Group Bhd (MAAG) is increasing its stake in associate MAA General Assurance Philippines Inc. and will turn the general insurance firm into a subsidiary.
In a stock market filing, MAAG said its insurance arm will pay PHP300 million (US$6.05 million) to purchase 300,000 new shares to increase its share in MAA General Assurance Philippines from 40% to 70%, subject to regulatory approval.
MAA General Assurance Philippines contributed a profit of MYR2.5 million (US$562,000) to MAAG in 2015, up from MYR2.1 million (US$472,000) in 2014.
At MAAG’s annual general meeting in June, group CEO Datuk Muhamad Umar Swift said that the company is planning to convert MAA General Assurance Philippines into a subsidiary in order to have control of the firm.
However, he said the company is not yet sure if it would increase its stake in Columbus Capital Pty Ltd, which is engaging in the home mortgage business in Australia, to make it a subsidiary.
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