Allianz General Insurance Malaysia Berhad (AGIM) has been successful in its bid for Commerce Assurance Berhad (CAB), the property and casualty insurance arm of Bumiputra Commerce Holdings Berhad (BCHB). BCHB has decided to sell its stake to Allianz. The transaction is subject to the approval of the relevant Malaysian authorities.
"The proposed acquisition is a significant step for Allianz in Malaysia and will make Allianz the second biggest player in the Malaysian P&C market," Alexander Ankel, CEO of AGIM commented. "We are confident that we will be the market leader in terms of products and services provided to customers and also as an employer. The intended acquisition will allow us to develop these strengths further by combining our global expertise with the local knowledge of CAB," he added.
Major step for Allianz in Malaysia
Bancassurance agreement with CIMB Bank
In addition to the proposed acquisition of CAB, the transaction also entails a ten year bancassurance agreement with CIMB Bank Berhad (CIMB Bank). CIMB Bank is Malaysia’s second largest bank with more than 4.5 million customers and a network of 383 branches nationwide.
"We are looking forward to working with CIMB Bank. They are one of Malaysia’s most exciting banks. This agreement completes our sales structures. It allows us to leverage a new diversified customer base and a strong additional distribution channel," Alexander Ankel said.
Allianz committed to Malaysia and Asia Pacific
The transaction underlines the commitment of Allianz to Malaysia and the Asia Pacific region. "This is the second major direct foreign investment that Allianz has made in Malaysia in the past six years, which is a testament to our confidence in this market and the regulatory framework that it provides," said Bruce Bowers, CEO of Allianz Asia Pacific.
In 2001, Allianz entered the Malaysian market by purchasing Malaysia British Assurance (MBA) Berhad and MBA Life Assurance Berhad from the Lion Group.
Bowers added, "The proposed acquisition is one example of our consistent expansion in Asia Pacific. Strengthening our retail presence, following a multi-distribution approach, and attaining top five positions in our chosen markets will remain our agenda for the future."
About Allianz in Malaysia
Allianz General Insurance Malaysia Berhad (AZGIM) is among the top three non-life insurers in the country, and offers a broad spectrum of services in personal lines, small to medium enterprise business and large industrial risks. It is supported by a strong network of 34 branches and 5,000 agents located throughout the country. Gross written premium were 507 million ringgit in 2005 (roughly 113 million euros in 2005).
In Asia Pacific, Allianz is present in 16 markets offering its core businesses of property and casualty insurance, life and health insurance, asset management and banking.
About Commerce Assurance Berhad
Commerce Assurance Berhad (CAB) today is a member of the Bumiputra Commerce Holdings Berhad Group. CAB concentrates on the personal lines in motor, fire and marine insurance. With gross written premiums of 475 million ringgit in 2005 (roughly 106 million euros in 2005), it is ranked number five in the market.
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