After the Catholic takeover, Malaysia. The size of the operation is decidedly smaller but strategically Generali takes another step in the direction of the guidelines drawn up for 2021.
The operation
The Lion of Trieste has in fact announced the strengthening in the Asian country where it has been present since 2015. A move that overall is worth 262 million and which involves the acquisition of Axa’s assets on the local market and the rise in the joint venture already owned.
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The assets
In particular, the company led by Philippe Donnet has signed an agreement for the purchase of the majority of the shares held by Axa and Affin respectively in the joint ventures Axa Affin General Insurance Berhad (49.99% from Axa and 3% from Affin and from other minority shareholders) and Axa Affin Life Insurance Berhad (49% from AXA and 21% from Affin). At the same time, the request was submitted to the local authorities to take over the remaining stake of Mpi Generali Insurans Berhad from Multi-Purpose Capital Holdings Berhad, a joint venture partner in Malaysia.
The transactions are subject to the approval of the Malaysian Ministry of Finance and the Central Bank of Malaysia and the total consideration is 1.29 billion Malaysian ringgit (262 million euros), subject to adjustment at closing, with an estimated impact on the Consolidated solvency of Generali equal to 3.5 percentage points.
The strategy
Following the transactions, Generali will operate in Malaysia through two companies, one active in the Non-Life segment and the other in the Life segment. In Non-Life, Generali intends to merge the activities of Mpi Generali with Axa Affin General Insurance. Once the agreements are finalized, the group will hold 70% of both companies, Life and Non-Life, which will operate under the Generali brand. Affin Bank will hold the remaining 30%. Thanks to the acquisition – moreover – Generali will position itself among the main insurers in the Malaysian market, creating the second Non-Life operator by market share and entering the country’s Life segment.