The stake represents 40% of the total issued and paid-up share capital of MCISZ, said Zurich Insurance Group in a statement released in Hong Kong today.
Upon completion of the sale, which is expected to take place on May 5, the gross sale proceeds to be realised by Zurich will be RM304 million (about US$93 million), it said.
“The disposal of our stake in MCISZ will satisfy the commitment made to Bank Negara Malaysia to rationalise our holding in two licences, following our acquisition of Malaysian Assurance Alliance Bhd (MAA),” said Geoff Riddell, Zurich’s chairman for Asia Pacific, Middle East and Africa.
In addition, it allows the company to focus exclusively on the development of its wholly-owned subsidiary Zurich Insurance Malaysia and resolves any customer confusion arising from the fact that the Zurich brand has been carried, since the middle of 2012, by two separate companies.
In 2011, Zurich acquired 100% of the total issued and paid-up share capital of the life and general insurer MAA and subsequently renamed it Zurich Insurance Malaysia Bhd in 2012.
The acquisition combined MAA’s strong local heritage and market position with Zurich’s global insurance expertise.
“Through Zurich Insurance Malaysia, we are well placed to capture growth in both the life and general insurance segments of the market and this move will further strengthen the growth prospects of these businesses over the long term,” he said.
Folllowing thwe successful completion of the transaction, MCISZ will no longer be a member of, or associated with, Zurich Insurance Group.
Zurich Insurance Group is a leading multi-line insurer that serves its customers in global and local markets.
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