Linklaters advises AXA and Affin Bank Berhad on the sale of insurance operations in Malaysia to Generali

AXA and Affin Bank Berhad (Affin Bank) have announced the proposed sale of AXA Affin General Insurance (AAGI) and AXA Affin Life Insurance (AALI) in Malaysia to Generali, for total cash proceeds of MYR 688m (approximately €140m).  At the same time, Generali proposes to acquire the remaining shares of MPI Generali Insurans Berhad (MPIG) and the business of MPIG is proposed to be transferred to AAGI. Following completion, Affin Bank will have a 30% stake in AAGI and AALI. The total deal value is MYR 1.3bn (approximately €262m). Linklaters, working alongside Rahmat Lim & Partners, advised AXA and Affin Bank on the transaction.

This transaction is one of the largest insurance deals in Malaysia in recent years.

Upon closing of the sale, Generali will enter into exclusive life and non-life bancassurance agreements with Affin Bank. The deal will position Generali as Malaysia’s second largest general insurer by market share and allow the company to enter the local life insurance sector.

The Linklaters team was led by corporate partners Matthew Middleditch and Sophie Mathur, with support from managing associates Gary Beh and Johanna Leung.

Partner and Asia Head of Corporate, Sophie Mathur, commented:

“The insurance industry has faced major changes in recent years, such as market conditions, distribution channels, as well as regulatory requirements. However, given the relatively low penetration rates in Asia, the potential for growth remains. Our team is grateful for the trust that AXA and Affin Bank have placed in us on this landmark transaction.”