KUALA LUMPUR, Aug 15 — The Prudential Insurance Company of America (PICA) and Bank Simpanan Nasional (BSN) are buying Uni.Asia Life Assurance Bhd from Uni.Asia Capital Sdn Bhd for RM518 million.

PICA is a unit of Prudential Financial, Inc (PFI), the company which does business as Pramerica in selected countries outside the United States.

Uni.Asia Capital is a joint-venture company, with 51 per cent and 49 per cent owned by DRB-HICOM Bhd’s wholly owned subsidiary Gadek (Malaysia) Bhd and United Overseas Bank (Malaysia) Bhd, respectively. 

“Malaysia is a very attractive market, with long-term growth potential, low life insurance penetration and a well-developed regulatory environment,” said

Timothy Feige, Senior Vice-President and International Insurance Group Executive for PFI, in a statement.

He said the transaction was aligned with the company’s strategy to build upon its success in Japan, South Korea and Taiwan and expand its footprint in the growth markets in Asia through its regional office in Singapore.

PICA and BSN submitted a request for approval of the proposed transaction to Bank Negara Malaysia today.

Through a newly formed joint venture, PICA will hold 70 per cent in Uni.Asia Life Assurance, while the remaining 30 per cent by BSN. 

The proposed acquisition is expected to close by end of this year.

“This is an important investment for BSN in an industry and market that offer strong potential for growth,” said BSN Chief Executive Officer Datuk Adinan Maning. 

“We are pleased with the opportunity to partner with a global leader in life insurance and an emerging company in Malaysia’s growing insurance industry.

“The combination of our respective expertise has the potential to give Uni.Asia Life Assurance a unique advantage in the marketplace,” he said.

Upon and subject to the completion of the proposed transaction, Uni.Asia Life Assurance will sign a strategic, long-term bancassurance agreement with BSN to distribute its conventional life insurance products through BSN’s banking network in Malaysia.

BSN is one of Malaysia’s largest banks with 397 branches, 3,593 registered banking agents, 8.22 million customers and total assets in excess of RM26.82 billion as of March 2013.

Uni.Asia Life Assurance also has a strategic distribution alliance for conventional life insurance products with Pos Malaysia Bhd, the exclusive provider of mail services in Malaysia. 

Pos Malaysia has an extensive retail network of more than 1,000 physical outlets nationwide.

Uni.Asia Life Assurance is a mid-sized life insurer in Malaysia, with a stable and scalable platform, as well as branches in major towns across the country. — Bernama