Axa Asia Pacific Holdings Ltd., a unit of Axa Group in Paris, said it is teaming up with a Malaysian company to buy the life insurance business of Tahan Insurance Malaysia.
Axa has signed a nonbinding agreement with Affin Holdings Berhad and Tahan to buy Tahan's life insurance arm. Axa said it hopes to close the deal by December, giving it access to the $4.2 billion of premium income in the Malaysian life insurance market.
Malaysia, with about 20% premium growth per year, is one of the fastest-growing insurance markets in Asia, Axa said.
The proposed transaction calls for an Axa-Affin life insurance joint venture to make an exclusive distribution agreement with Affin Bank and other Affin subsidiaries.
Axa said the alliance will leverage its regional best practice blueprints, particularly the bancassurance blueprint, and Affin's extensive bank branch network.
