AXA sells Malaysian insurance assets to Generali

The deals will turn Generali into Malaysia's second biggest P&C player.

Generali has agreed to buy Axa's insurance assets in Malaysia and take full ownership of a joint-venture it runs in the country to strengthen its local presence, reports Reuters.

The deals will turn Generali into the second-biggest player in Malaysia's P&C insurance market whilst also allowing the company to enter the local life sector. The total consideration for the combined deals is around $312m (EUR262m).

Under the latest deal, Generali will buy around 53% of a joint-venture between Axa and Malaysia's Affin Bank dubbed AXA Affin General Insurance. It will also take a 70% stake in another Axa JV with Affin, AXA Affin Life Insurance.

Axa will receive around $166.9m (EUR140m) from the two sales, it said.

Generali has also asked Malaysian authorities to allow it to increase its 49% stake in local joint venture MPI Generali Insurans Berhad to 100%. Generali plans to merge this later with Axa Affin General Insurance.

Generali will then operate in Malaysia through two companies, one in the P&C business and the other in life insurance, holding 70% of each company, while Affin Bank will own the remaining 30%.

Here’s more from Reuters.