Singapore’s largest life insurance firm Great Eastern and Assicurazioni Generali, an Italian life insurance firm are potential bidders for Axa-Affin life and general insurance businesses in Malaysia.
Axa and Affin have been considering options for the sale of their Malaysian joint venture. The deal is expected to reach $650 million, media reports said. Currently, the two firms are expecting bids of around $500 million on AXA Affin General Insurance and $150 million on AXA Affin Life Insurance.
French major Axa and Malaysia’s Affin Bank established the life and general insurance joint venture in 2006. The two potential bidders Great Eastern and Assicurazioni Generali are closely working with their respective advisers on the proposed deal. The first round of bidding is expected to be wrapped up by the end of next month, media reports said.
In 2018, Axa Affin General Insurance underwrote $347 million in gross earned premiums, media reports said. At the time, the insurance firm posted a net income of $24 million.
AXA Affin General Insurance is one of the top medical and health insurers in Malaysia. It is reported to have 5,000 agents across the region. Currently, Axa owns 49.99 percent of the Malaysian general insurance business, while Affin Bank accounts for 49.95 percent. Axa owns a majority stake of 51 percent in Axa Affin Life and the remaining is held by Affin Bank.
Established in 2001, Affin Bank is a wholly-owned subsidiary of Armed Forces-linked Affin Holdings. Great Eastern is majority-owned by Oversea-Chinese Banking (OCBC Bank).