Zurich Insurance, part of Zurich Financial Services Group, has agreed to acquire 100% of Malaysian composite insurer Malaysian Assurance Alliance Berhad's (MAAB) share capital for $115m.
Zurich will be acquiring MAAB from Malaysia-based MAA Holdings Berhad, whose primary activity is the manufacturing and sale of insurance products through MAAB.
Upon completion of the transaction, Swiss insurer expects to make a capital injection of up to $172m into MAAB in order to bring the company into compliance with local capital requirements. Thus Zurich’s total cash outlay relating to the acquisition will be up to $287m.
Headquartered in Kuala Lumpur, MAAB at the end of 2010 had gross written premiums of approximately $476m, of which $320m were contributed by MAAB’s life business, distributes life insurance products through approximately 4,8002 tied life agents and general insurance products through approximately 3,000 multi-tied agents.
Zurich CEO Martin Senn said the acquisition of MAAB expands the presence in the Asia-Pacific region and positions the company for further profitable growth.
The acquisition is subject to the approval of the shareholders of MAAH and the fulfillment of the necessary completion conditions, the transaction is expected to close in the third quarter of 2011.