AXA, Affin weigh options for Malaysian insurance business

BLOOMBERG/GOH SENG CHONG

French insurer AXA and Affin Bank are exploring options including a potential sale of their life and general insurance business in Malaysia that could fetch about $650 million, reported Bloomberg.

Kuala Lumpur-based Affin Bank and AXA are working with advisers on the potential deal. The financial firms are seeking around $500 million on AXA Affin General Insurance, while they are looking to raise as much as $150 million from AXA Affin Life Insurance in a transaction.

Deliberations are at an early stage and the companies could decide to keep their holdings in the Malaysian business.

AXA Affin General Insurance is among the top medical and health insurers in Malaysia, with 5,000 agents across the nation. The company underwrote MYR 1.44 billion ($341 million) in gross earned premiums and posted a net income of 100 million ringgit in 2018.

AXA Affin Life Insurance, set up in 2006, earned gross premiums of MYR 463.4 million in 2018, down from MYR 490 million a year earlier. The company’s losses narrowed to MYR 8.1 million from MYR 17.7 million a year ago.

AXA owns 49.99 per cent of the Malaysian general business operations, while Affin Bank holds 49.95 per cent. In AXA Affin Life, Affin controls 51 per cent and the rest belongs to the French insurer.