28th Nov 2008 12:33
28 November 2008
Friends Provident takes 30% stake in Malaysian life business
Friends Provident plc ("Friends Provident") has signed an agreement with AMMB Holdings Berhad to take a 30% stake in AmLife Insurance Berhad ("AmLife"), a business comprising the established life operations of AmAssurance Berhad ("AmAssurance"). Consideration will be RM170m (£30m*) in cash, payable upon completion. This investment will give Friends Provident a stake in a fast-growing business with excellent potential. AmAssurance has an established position in both agency and bank distribution in Malaysia. AmAssurance's annualised new life business premiums grew by 18% to RM93m (£17m*) for the year to 31 March 2008, including 27% growth in sales through bank distribution.
The agreement has been approved by the Malaysian regulators, and is subject to completion of an associated transaction between AMMB Holdings Berhad and Insurance Australia Group ("IAG") for which regulatory approval has also been granted and an agreement has been signed. The agreement includes provision for a potential future increase in Friends Provident's stake, subject to regulatory approval.
Trevor Matthews, chief executive officer of Friends Provident, said:
"I am excited about our new investment in Malaysia, which positions us well to participate in the many opportunities in this market. This is further evidence of our commitment to international growth in general and to Asia in particular. It is a modest investment but an important strategic development."
Further information
AmLife will comprise the life assurance operations of AmAssurance, the well-established life and general insurance joint venture of AMMB Holdings Berhad and IAG. AMMB Holdings Berhad is itself part-owned by ANZ Bank. The general insurance operations provided by AmAssurance will be transferred to a separate legal entity, in which IAG will hold a stake. AmAssurance distributes its products primarily through AMMB Holding Berhad's retail banking arm and its network of around 4,000 agents. Friends Provident expects to collaborate with AmLife to share expertise in product development, technology, and potentially pensions, which are expected to be an area of future profitable growth in the Malaysian market. The number of participants in the Malaysian market is limited and we do not expect new entrants in the near future.
The gross assets of the life and shareholder funds of AmAssurance had a carrying value under Malaysian GAAP of RM1,949m (£349m*) as at 31 March 2008. In the year to 31 March 2008, the profits attributable to these assets were RM15m (£2.7m*) calculated under Malaysian GAAP. The chief executive officer of AmAssurance is Ng Lian Lu.
* All sterling values based on exchange rate at 26 November 2008 of 5.5796 MR to one pound
- Ends -
For further information, please contact:
|
Nick Boakes |
Friends Provident plc |
+44 (0)845 641 7814 |
|
Peter Timberlake |
Friends Provident plc |
+44 (0)845 641 7834 |
|
Chris Ford |
Friends Provident plc |
+44 (0)845 641 7832 |
|
Alex Simmons |
Finsbury Limited |
+44 (0)20 7251 3801 |
Ref: I092
Notes to Editors
About AmAssurance:
AmAssurance is a distinctive brand name of quality in the Malaysian insurance industry. Behind AmAssurance is the strong franchise of AmBank Group, a leading regional banking group. AmAssurance's business is generated from a comprehensive range of life and general solutions offered through a combination of over 200 banks and branches serviced by 4,000 representatives nationwide. With almost 36 years of expertise and over RM2.0 billion of assets under management, AmAssurance has positively touched the lives of millions of Malaysians and is rapidly gaining ground as one of the most well-regarded and competitive insurers in Malaysia. AmAssurance's achievements have been recognised through the Regional Outstanding Entrepreneurship Award 2008 at the Asia Pacific Entrepreneurship Awards 2008.
About Friends Provident:
Friends Provident plc is a UK-listed life and pensions company, originally founded in 1832 to alleviate the hardship of Quaker families facing misfortune. Friends Provident's strategy today is to operate in markets where it can deploy its award-winning strengths in technology and service to gain competitive advantage. Since its demutualisation in 2001, the company has developed strong offerings in pensions and protection to complement its historic With Profits business, and now prioritises international growth. Friends Provident is fully committed to the principles of the FSA initiative 'Treating Customers Fairly'.
Friends Provident distributes its products through intermediaries in the UK and around the world. Its key business lines in the UK are protection and corporate pensions. Friends Provident International develops competitive savings, investment and pensions products for a broad and diverse range of markets including Hong Kong, the United Arab Emirates and Germany.
For more information on Friends Provident including, photos, awards, fast facts, presentations, and media contacts please visit the media section at www.friendsprovident.com/media
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