PETALING JAYA: Affin Bank Bhd and Generali Asia N V (Generali) have agreed to form a joint venture to develop their life and general insurance businesses in Malaysia.

       In a statement, Affin said it had agreed to dispose of a 21% equity interest in AXA Affin Life Insurance Bhd and approximately a 2.95% equity interest in AXA Affin General Insurance Bhd (AAGI) to Generali.

       In addition, Affin has also agreed for AAGI to acquire certain assets and liabilities of MPI Generali Insurans Bhd (MPIG).

       This will be done via a business transfer (AAGI Merger) to create an enlarged company (MergeCo).

       “The entry of Generali as the new major shareholder of MergeCo will enable Affin to monetise part of its investments in the insurance businesses, the proceeds of which will be reallocated to fund growth in its core banking business,” said Affin.

       According to Affin, MergeCo is expected to be the second biggest general insurance provider with an estimated gross written premium of more than RM2bil and total assets of more than RM6bil. ― Bernama