Al­lianz and Mit­sui Su­mit­omo short­listed for in­surer bid

The Star Malaysia - StarBiz - - News -

KUALA LUMPUR: Al­lianz Malaysia Bhd and Mit­sui Su­mit­omo In­sur­ance Co have been short­listed to pro­ceed to the next round of bid­ding for AmGen­eral In­sur­ance Bhd, in a deal that could value Malaysia’s sec­ond-big­gest car in­surer at about US$800mil (RM3.3bil), sources said.

The two par­ties will need ap­proval from the cen­tral bank be­fore for­mally start­ing de­tailed ne­go­ti­a­tions with AmGen­eral’s own­ers, the sources said. There’s no cer­tainty the dis­cus­sions will re­sult in a trans- ac­tion, ac­cord­ing to the sources.

AMMB Hold­ings Bhd owns 51% of AmGen­eral, while In­sur­ance Aus­tralia Group Ltd holds the re­main­der. A deal may in­clude a ban­cas­sur­ance agree­ment, which would give the right to dis­trib­ute in­sur­ance prod­ucts through AMMB’s branch net­work, the sources said.

The trans­ac­tion could pro­vide a road map for Pru­den­tial Plc and Tokio Ma­rine Hold­ings Inc, which have been also con­sid­er­ing cut­ting stakes in their Malaysian in­sur­ance units. The gov­ern­ment has been seek­ing more lo­cal in­vest­ment in the in­dus­try, though cen­tral bank gov­er­nor Datuk Nor Sham­siah Mohd Yunus said in Au­gust that for­eign in­sur­ers will be given flex­i­bil­ity and dead­lines for com­pli­ance will be case-by-case.

Rep­re­sen­ta­tives for Al­lianz Malaysia and AMMB de­clined to com­ment. A spokesman for Mit­sui Su­mit­omo In­sur­ance, which is a unit of Tokyo-listed MS&AD In­sur­ance Group Hold­ings Inc, also de­clined to com­ment. A spokeswoman for IAG said the com­pany has noth­ing to dis­close at this time.

AmGen­eral has more than four mil­lion pol­i­cy­hold­ers and a net­work of 7,000 agents and deal­ers mar­ket­ing prod­ucts un­der the AmAs­sur­ance and Kur­nia brands. AmGen­eral un­der­wrote RM1.52bil of gross pre­mi­ums and earned RM255.5mil in net in­come in the fi­nan­cial year ended March, ac­cord­ing to the in­surer’s an­nual re­sults. — Bloomberg

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