Insurance Australia Group’s (IAG) Malaysian associate, AmG Insurance Berhad (AmG), has proposed to sign an agreement to acquire Kurnia Insurans (Malaysia) Berhad (Kurnia).

The approved and completed transaction will result in merged AmG and Kurnia business.

The transaction proceedings would involve the funding of IAG’s share of the purchase price from internal resources and, on a pro forma 30 June 2011 basis, would retain a regulatory capital position above its long term benchmark of 1.45 to 1.50 times the minimum capital requirement.

Kurnia Insurans is the principal general insurance business of Kurnia Asia Berhad.