On behalf of the Board of Directors of Affin (“Board”), Affin Hwang Investment Bank Berhad (“Affin Hwang IB”) wishes to announce Affin had on 22 June 2021 entered into an Implementation Agreement with Generali Asia N.V. (“Generali Asia”) where Affin intends to undertake the following proposals:

1.   Disposal of 21.00% equity interest in AXA Affin Life Insurance Berhad (“AALI”) (“Proposed AALI Disposal”); and

2.   Disposal of approximately 2.95% equity interest in AXA Affin General Insurance Berhad (“AAGI”) (“Proposed AAGI Disposal”).

Affin currently holds 51.00% and 49.95% equity interest in AALI and AAGI respectively, whilst AXA Asia holds 49.00% and 49.99% equity interest in AALI and AAGI, respectively.

Upon completion of the Proposed AAGI Disposal, AAGI will acquire certain assets and liabilities of MPI Generali Insurans Berhad (“MPIG”) via a business transfer to AAGI (“Proposed Merger”).

(Proposed AALI Disposal, Proposed AAGI Disposal and Proposed Merger are collectively referred to as the “Proposals”)

Subsequent to the completion of the Proposals, Affin will hold 30% equity interest each, in AALI and the enlarged equity interest in AAGI after the Proposed Merger.

Simultaneously with the Proposed AALI Disposal and Proposed AAGI Disposal, AXA Asia is also selling its entire 49.00% shareholding in AALI and approximately 49.99% shareholding in AAGI (“Proposed AXA Disposals”).  

AXA Asia (a wholly-owned subsidiary of AXA SA), National Mutual International Pty Ltd (a wholly-owned subsidiary of AXA Asia) and Generali Asia have similarly entered into an Implementation Agreement for the Proposed AXA Disposals.

Under both the Implementation Agreements, Affin, AXA Asia and Generali Asia will proceed to make their respective applications to Bank Negara Malaysia (“BNM”). All the relevant definitive agreements relating to the Proposals will only be executed after the approval of BNM and other relevant parties have been obtained.

The Proposals will allow Affin to monetise part of its investment in the insurance segment and retain a significant interest in an enlarged insurance segment in partnership with Generali Asia. In addition, the proceeds to be received from the Proposals can reallocated to fund business growth in its core banking business. 

In addition to the Proposals, Affin will also enter into an exclusive 15-year bancassurance partnership with Generali to distribute its conventional life and general insurance products.

Further details on the Proposals will be announced in due course after the decisions from the approving parties have been obtained.

A copy of the press release in relation to the Proposals is attached.

This announcement is dated 22 June 2021.