KUALA LUMPUR: Affin Bank Bhd has obtained the approval from the Ministry of Finance (MoF) on May 6 to dispose of 21 per cent of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95 per cent stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia N.V.

       Currently, Affin owns 51.0 per cent in AALI and 49.95 per cent in AAGI.

       In a statement today, Affin said it would enter into a share sale agreement with Generali Asia for the AALI and AAGI disposals subject to the satisfaction of the remaining signing conditions under the implementation agreement, and further announcements would be made accordingly.

       "We see synergistic growth opportunities for AAGI and AALI with this joint venture with Generali and the ability to enhance our financial solutions and products offerings to our customers through the future bancassurance partnership with Generali,” said Affin president and group chief executive officer Datuk Wan Razly Abdullah Wan Ali.

       On June 22, 2021, both Affin and Generali entered into an implementation agreement for the AALI and AAGI disposals.

       In addition, Affin has also agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI, whereby AAGI will acquire certain assets and liabilities of MPIG via a business transfer to create an enlarged company, subject to the approval of Bank Negara Malaysia (BNM).

       It said a new local company (Newco) will be incorporated to hold all of the shares in AALI and AAGI (MergeCo).

       Affin will, in turn, be holding 30 per cent equity interest in the Newco, with Generali holding the remaining 70 per cent equity interest in the Newco, it added.

       "Consequently, Affin is required by BNM to make the necessary submission for its shareholding in the Newco to BNM within one month from May 6, 2022,” said Affin. - Bernama