Source: AIA Press Re­lease, 11 Oc­to­ber 2012

Insurance - - COMPANY CORNER -

AIA Group Lim­ited (AIA) has reached agree­ment with ING to ac­quire its in­surance sub­sidiaries in Malaysia for a cash con­sid­er­a­tion of Euro 1.336 bil­lion (RM5.37 bil­lion).

The ac­qui­si­tion re­mains sub­ject to reg­u­la­tory ap­proval and the ex­e­cu­tion of the ap­pro­pri­ate le­gal doc­u­men­ta­tion. Once ap­proved, the ac­qui­si­tion will be im­me­di­ately ac­cre­tive to AIA’s earn­ings and will make AIA the Num­ber One ranked in­surance provider by to­tal pre­mi­ums in the high-growth Malaysian mar­ket.

Mark Tucker, AIA’s Group Chief Ex­ec­u­tive and Pres­i­dent said this ac­qui­si­tion is a unique op­por­tu­nity for AIA to fur­ther en­hance its abil­ity to sus­tain high­qual­ity growth in the fastest grow­ing in­surance re­gion in the world and in one of the most at­trac­tive mar­kets in the re­gion.

ING’s busi­ness in Malaysia (third largest in­surer in Malaysia) rep­re­sents a strate­gic fit with AIA where the com­pany al­ready has a well-es­tab­lished and strong busi­ness and abil­ity to in­te­grate ING’s busi­nesses with AIA.

The ac­qui­si­tion will be funded through an ef­fi­cient com­bi­na­tion of in­ter­nal cash re­sources and ex­ter­nal debt fi­nanc­ing that will re­tain AIA’s ex­ist­ing strong fi­nan­cial po­si­tion. The par­ties are work­ing to­wards com­ple­tion by the first quar­ter of 2013.

The an­nounce­ment of the ac­qui­si­tion of ING’s Malaysian busi­ness co­in­cides with the re­port­ing of AIA’s third quar­ter new busi­ness high­lights. AIA con­tin­ues to achieve record value of new busi­ness (VONB) with a 22% in­crease in VONB to US$300 mil­lion (RM916 mil­lion).

EUR1.00 = RM4.02 USD1.00 = RM3.06

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