AmAssurance Surrenders Composite Licence

AmAssurance will surrender its composite insurance licence from 1 December 2008 with creation of 2 separate entities: AmLife Insurance Berhad and AmG Insurance Berhad carrying out life insurance and general insurance respectively. AMAB Holdings Sdn Bhd is the new holding company for these 2 entities.

Meanwhile IAG will increase its holding in AmG from 30% to 49% and dispose off its 30% holding in AmLife to Friends Provident. The transaction prices are:

• 19% of AmG: RM141 mil
• 30% of AmLife: RM170 mil

Source: Bursa Malaysia

IAG - A Takeover Target

Insurance Australia Group (IAG) has become a takeover target of QBE Insurance Group Ltd. However, until the time this blog was posted, the offer made by QBE was rejected by the Board of IAG on the reason that the offer made was inadequate and not attractive.

IAG owns 30% of AmAssurance in Malaysia.

Source: Bloomberg

IAG Plans to Dispose Stake in AmAssurance Life

IAG plans to dispose of its 30% stake in AmAssurance life business, the potential buyer is Friends Provident, although the latter is itself a potential takeover target of US private equity firm JC Flowers & Co.

It was reported that IAG would focus on general insurance business by increasing its stake in AmG Insurance from the current 30% to 49%. IAG bought the 30% stake in 2006 for RM193.2 mil.

http://www.btimes.com.my/Monday/OurPick/am24.xml/Article