The ACE Group of insurance and reinsurance companies has agreed to acquire 100 percent of Jerneh Insurance Berhad, a general insurance company in Malaysia that is majority owned by Jerneh Asia Berhad, which is listed on Bursa Malaysia Securities Berhad. The proposed acquisition price is approximately $200 million.
ACE received approval from government regulators for the acquisition last month
Jerneh Insurance Berhad was established in 1970. It says it is one of the top 10 general insurers in the country, providing fire, marine, aviation, motor, engineering, household and accident and health insurance.
The proposed acquisition price of approximately $200 million is subject to adjustment based on the book value of Jerneh Insurance Berhad at the transaction’s closing. Completion of the transaction is expected during the fourth quarter of 2010 and is contingent on approval of the sellers’ shareholders and other closing conditions.”
John Keogh, chairman, Insurance – Overseas General, said that the acquisitionvvwill provide ACE with a multi-channel distribution business with strong bancassurance relationships, an agency force of nearly 1,300, and 19 branches for greater direct consumer access.
He said that Jerneh is “very complementary” to ACE’s existing business in Malaysia and it positions ACE as one of the top general insurers in the country.
The addition of Jerneh will be accretive to ACE’s earnings and book value per share and is expected to meet ACE’s return-on-capital hurdle rate.
Was this article valuable?
Here are more articles you may enjoy.