‘Great Eastern, Generali keen to bid for AXA Affin’

KUALA LUMPUR: Singapore’s Great Eastern Holdings Ltd and Assicurazioni Generali SpA are among potential bidders for the life and general insurance businesses in Malaysia that AXA SA and Affin Bank Bhd own, according to people familiar with the matter.

Great Eastern, which is majority-owned by Oversea-Chinese Banking Corp, and Italy’s Generali were working with their respective advisers on potential offers, said the people.

The first round of bidding was expected to conclude by the end of next month, they said.

AXA and Affin have been exploring options for their Malaysian joint venture, which could fetch about US$650 million, Bloomberg News reported in September last year.

They were seeking around US$500 million on AXA Affin General Insurance Bhd, and as much as US$150 million from AXA Affin Life Insurance Bhd in a transaction, said the people.

Deliberations were ongoing and the companies could decide not to proceed with an offer, they added.

Representatives for AXA, Generali and Great Eastern declined to comment, while a representative for Affin did not immediately respond to requests for comment.

AXA Affin General Insurance is among the top medical and health insurers in Malaysia, with 5,000 agents across the nation.

The company underwrote RM1.44 billion in gross earned premiums and posted a net income of RM100 million in 2018, according to its latest annual report.

AXA Affin Life Insurance, set up in 2006, earned gross premiums of RM463.4 million in 2018, down from RM490 million a year earlier, its annual report shows.