Once approved, the acquisition will make AIA the largest insurance provider by total premiums in the Malaysian market, according to a statement released by the insurer earlier today.
AIA said the acquisition will be funded through a combination of internal cash resources and external debt financing.
The parties are working towards completion by the first quarter of 2013.
The announcement of the acquisition of ING’s Malaysian business coincides with the reporting of AIA’s third quarter new business which revealed value of new business had increased 22% to $300m.
Mark Tucker, AIA’s group chief executive said: “This is a compelling and unique opportunity for AIA to further enhance our ability to sustain high-quality growth in the fastest-growing insurance region in the world and in one of the most attractive markets in the region.
“ING’s business in Malaysia represents an excellent strategic fit with AIA where we already have a well-established and strong business and the ability to integrate ING’s businesses with our own. This means a highly attractive investment proposition with very positive benefits for all stakeholders: customers, employees, agents and shareholders.”
