Singapore’s Great Eastern Holdings Ltd. and Assicurazioni Generali SpA are among potential bidders for the life and general insurance businesses in Malaysia that AXA SA and Affin Bank Bhd. own, according to people familiar with the matter.
Great Eastern, which is majority-owned by Oversea-Chinese Banking Corp, and Italy’s Generali are working with their respective advisers on potential offers, said the people, who asked not to be identified as the discussions are private.
The first round of bidding is expected to conclude by the end of next month, the people said.
AXA and Affin have been exploring options for their Malaysian joint venture, which could fetch about US$650 million, Bloomberg News reported in September.
They are seeking around US$500 million on AXA Affin General Insurance Bhd., and as much as US$150 million from AXA Affin Life Insurance Bhd in a transaction, the people familiar with the matter have said.
Deliberations are ongoing and the companies could decide not to proceed with an offer, said the people.
Representatives for AXA, Generali and Great Eastern declined to comment, while a representative for Affin didn’t immediately respond to requests for comment.
AXA Affin General Insurance is among the top medical and health insurers in Malaysia, with 5,000 agents across the nation.
The company underwrote RM1.44 billion (US$347 million) in gross earned premiums and posted a net income of RM100 million in 2018, according to its latest annual report.
AXA Affin Life Insurance, set up in 2006, earned gross premiums of RM463.4 million in 2018, down from RM490 million a year earlier, its annual report shows.
The company’s losses narrowed to RM8.1 million ringgit from RM17.7 million a year ago.
AXA owns 49.99 per cent of the Malaysian general business operations, while Affin Bank holds 49.95 per cent, according to AXA’s website.
In AXA Affin Life, Affin controls 51 per cent and the rest belongs to the French insurer.