Italian insurer Generali Group has acquired a minority stake held by its partner Kuok Group in its holding company Generali Asia in a €40m deal.

Generali Asia manages the group’s insurance operations in the Philippines, Thailand and Indonesia.

As per the terms, Generali has taken over 40% minority stake, which it did not own, in the Asian unit.

The company stated that the minority buy-out of Generali Asia is in line with its strategy to have full control of its core businesses, and allows it to simplify operations in the region. The deal has a negligible impact on the solvency position of the group, it added.

Generali Group CEO Mario Greco said, "This investment is testament to our commitment to Asia, an area with exceptionally high growth prospects due to rising middle class and a young population.

"We are very thankful to the Kuok Group, which remains a solid and long-term partner in the area and whose support and effective cooperation has been key to build successful operations over the years."

Established in 1999, Generali Asia is a regional partnership between Generali Group and Kuok Group.

The unit operates in the life segment through a multi-channel distribution strategy in Indonesia, the life segments primarily through bancassurance in the Philippines and in the P&C and Life businesses segments through in the direct and broker channels in Thailand.

For the first nine months of 2013, Generali Asia recorded up to 50% rise in premium income, compared with the same period in the previous year. In 2012, it wrote premium income of approximately €1bn.