Assicurazioni Generali has announced the acquisition of majority stakes in two Malaysian joint ventures between the multinational AXA and Affin Bank (one of the most critical local banks): 53% of “Axa Affin General Insurance”, active in the property & casualty sector, and 70% of “Axa Affin Life Insurance”, specialised in the life sector. Both are among the leading insurance companies operating in Malaysia. According to AXA representatives, the sales are expected to be finalised by the first half of 2022.
In parallel, Generali has applied to the local authorities to increase its stake in Mpi Generali Insurance Berhad to 100%, of which it already holds 49%. The final objective is to merge MPIB with Axa Affin General Insurance to create a single large group, of which Generali would own 70%.
The Italian group would thus consolidate its presence in Malaysia with significant medium-long term investments and prospects for further expansion in a sector characterised by a high profitability index. This result would be achieved thanks to the constantly growing middle-class trend and the insurance penetration rate, still relatively low compared to other more mature markets in the continent. In fact, over the last ten years, the total amount of insurance premiums has almost doubled, from 1.6 to 2.9 billion euros.