AIA EXTENDS PAN-ASIAN LEADERSHIP POSITION WITH ACQUISITION OF ING MALAYSIA
Source: AIA Press Release, 11 October 2012
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