Zurich to Acquire Malaysian Assurance Alliance Berhad

Zurich Financial Services Group announced that its subsidiary, Zurich Insurance Company Ltd., has signed an agreement to acquire 100 percent of the share capital of Malaysian Assurance Alliance Berhad (MAAB), a Malaysian composite insurer.

Zurich is acquiring the company from MAA Holdings Berhad (MAAH), a listed Malaysian group whose primary activity is the manufacturing and sale of insurance products through MAAB.” The insurer was founded in 1968 and is headquartered in Kuala Lumpur.

Zurich noted that, at the end of 2010 it “had gross written premiums of approximately $476 million, of which $320 million were contributed by MAAB’s life business. With its nationwide presence, MAAB distributes life insurance products through approximately 4,800 tied life agents and general insurance products through approximately 3,000 multi-tied agents.”

The purchase price will be paid in Malaysian Ringgit, which, Zurich said, would be “approximately $115 million.” After completion of the transaction Zurich said it “anticipates making a capital injection of up to $172 million into MAAB in order to bring the company into compliance with local capital requirements. Thus Zurich’s total cash outlay relating to the acquisition will be up to $287 million.”

CEO Martin Senn commented: “The acquisition of MAAB is another milestone in our emerging-market strategy. It expands our presence in the Asia-Pacific region and positions us for further profitable growth. Malaysia is a highly attractive market with considerable economic potential and a young and dynamic population.”

The acquisition is subject to the approval of the shareholders of MAAH and the fulfillment of the necessary completion conditions, the transaction is expected to close in the third quarter of 2011.

Source: Zurich Financial Services

Topics Mergers & Acquisitions