KUALA LUMPUR: Generali Malaysia aims to be one of Malaysia's largest general insurers and emerging life insurers following its planned business integration with Affin Bank Bhd.
Generali International Asia regional officer Roberto Leonardi said the company had increased its stake in MPI Generali Insurans Bhd and acquired AXA Affin General Insurance Bhd's (AXA) shares in its joint venture with Affin Bank.
Leonardi said the transaction valued the acquired companies at nearly RM1.29 billion (EUR 262 million), making it one of Malaysia's most prominent mergers and acquisitions (M&A) transactions in recent years.
"This marks a significant proof of confidence from the company in the people and high potential markets like Malaysia.
"With close to two million customers within the local market share today, Generali Malaysia is now the second largest general insurer in Malaysia, commanding a strategic entry-level position in Malaysia's life insurance category.
"We are optimistic and confident of the country's market outlook and strong potential for growth with its economic development and current low insurance penetration," he told reporters at the launch of Generali Malaysia here today.
On April 1, 2023, the businesses were integrated under a single, unified brand ― Generali Malaysia.
The integration positions Generali Malaysia as one of the largest general insurers and emerging life insurers in Malaysia, broadening its edge in a competitive market.
According to Leonardi, the company plans to invest in technology, new products and solutions to meet the local prudential solvency requirements, which the regulator sets.
He said the company would inject capital to meet those prudential requirements as it grows the business.
"We will continue to invest in the businesses, in the people and the technology and also to make sure that we support the capital requirements necessary to run an insurance company or insurance companies in the market on life and the primary & non-contributory (PNC) side.
"We probably see that we will invest more on the life side initially because we have much more aggressive expansion plans," he said.
Meanwhile, Generali Insurance Malaysia Bhd chief executive officer Fabrice Benard said that for its integration business, the company had set a two-year plan that started in September last year.
"We have two companies now, AXA Affin General Insurance Bhd (AAGI) and MPI General Insurance (MPIG). We can also achieve a successful system migration on the GI company. So that's where we stand.
"Our plan on the integration is supposed to end by 2024. So for the moment, it's integration, standardisation, protecting our customers, protecting our agents, protecting what comes for all the team committed here and us," said Benard.
Supported by over 1,600 workforces, a vast distribution network of more than 9,000 agents, partners and distributors and 49 branches nationwide, Generali Malaysia is presented with the advantage of a larger market share in Malaysia which is further boosted with a broader range of products and services.
"As an insurer with over 190 years of insurance heritage and experience, we strive to provide better experiences as a whole by transforming our role to go beyond selling products and to provide more value-added, personalised service in line with our 'Lifetime Partner 24: Driving Growth' commitment," Benard added.
Rooted in Italy, Generali Group has a strong heritage and legacy of protection of more than 190 years.
To date, Generali has a presence in over 50 countries and a workforce of 82,000 employees serving 68 million customers.