Ace Group has received approval from Malaysia’s financial regulator, the Minister of Finance through Bank Negara Malaysia, to acquire Jerneh Insurance, a general insurance company.
Jerneh Insurance Berhad is a majority owned company by Jerneh Asia, an investment holding company.
The proposed acquisition price is approximately $200m, subject to adjustment to reflect the book value of Jerneh Insurance at the transaction’s closing, according to Ace Group.
The transaction is expected to close during the fourth quarter of 2010, subject to seller shareholder approvals and other closing conditions.
Ace chairman and CEO Evan Greenberg said that this transaction provides a strategic fit and complements the company’s current presence in Malaysia.
“The addition of Jerneh Insurance Berhad will be accretive to Ace’s earnings and book value per share and will meet our return-on-capital hurdle rate,” Greenberg said.