AXA teams up for joint venture in Malaysia

Financial services group AXA Asia Pacific Holdings Ltd said yesterday that it is teaming up with a Malaysian company to buy the life insurance business of Tahan Insurance Malaysia.

AXA has signed a non-binding indicative agreement with Affin Holdings Berhad (AHB) and Tahan to purchase Tahan's life insurance arm.

AXA said it hopes to complete the deal by December giving it access to the US$4.2 ($6.03) billion total life premium income Malaysian life insurance market.

AXA said Malaysia has one of the fastest growing insurance markets in Asia at around 20 per cent premium growth per year.

Under the proposed transaction, AXA and AHB will enter the life insurance joint venture into an exclusive distribution agreement with Affin Bank and AHB subsidiaries.

AXA said it will leverage its regional best practice blueprints, particularly the Bancassurance blueprint, and AHB's extensive bank branch network into the alliance.

- AAP