Linklaters advises in major insurance sale operations in Malaysia

Linklaters advises in major insurance sale operations in Malaysia

The Magic Circle firm advised AXA and Affin Bank Berhad on the sale of insurance operations in Malaysia to Generali

The UK-based international law firm Linklaters advise to its clients AXA and Affin Bank Berhad (Affin Bank) have resulted in a key sale of their insurance business in Malaysia. AXA and Affin Bank have announced the proposed sale of AXA Affin General Insurance (AAGI) and AXA Affin Life Insurance (AALI) to Generali in Malaysia.

The deal for total cash proceeds is worth Malaysian Ringgit (MYR) 688 million (approximately €140 million). Generali proposes to acquire the remaining shares of MPI Generali Insurans Berhad (MPIG) and the business of MPIG is proposed to be transferred to AAGI.

Following completion, Affin Bank will have a 30 per cent stake in AAGI and AALI. The total deal value is MYR 1.3 billion (approximately €262 million). Linklaters, working alongside Rahmat Lim & Partners, advised AXA and Affin Bank on the transaction, which is one of the largest insurance deals in Malaysia in recent years.

The Linklaters team was led by corporate partners Matthew Middleditch and Sophie Mathur with support from managing associates Gary Beh and Johanna Leung.

"The insurance industry has faced major changes in recent years, such as market conditions, distribution channels, as well as regulatory requirements. However, given the relatively low penetration rates in Asia, the potential for growth remains. Our team is grateful for the trust that AXA and Affin Bank have placed in us on this landmark transaction," Linklaters Partner and Asia Head of Corporate Sophie Mathur said.

The deal will position Generali as Malaysia's second-largest general insurer by market share and allow the company to enter the local life insurance sector once is the deal is closed. It will enable Generali to enter into exclusive life and non-life bancassurance agreements with Affin Bank.