KUALA LUMPUR, Dec 2 — Fairfax Financial Holdings Ltd (Fairfax), through its wholly-owned subsidiary, the Pacific Insurance Bhd, had entered into a business transfer agreement with MCIS Insurance Bhd (MCIS) and Koperasi MCIS Bhd to acquire their general insurance business.
In a statement today, Fairfax said Pacific Insurance has been granted approval by Bank Negara Malaysia for the acquisition which was subject to customary closing conditions including court approval.
The transaction is expected to be completed in the first quarter of 2015. MCIS is an established life and general insurer in Malaysia with over RM180 million in gross written premiums for its general insurance business recorded in 2013.
On closing, the general insurance division of MCIS would integrate with and trade under the name Pacific Insurance and become part of the Fairfax Asia group.
Fairfax Chairman and Chief Executive Officer Prem Watsa said MCIS, with a very strong presence in the Malaysian insurance sector, provided great opportunity for the group to expand their operations in the region.
“We look forward to work with Koperasi MCIS as our new partner in Malaysia, which had been involved in the insurance business for more than five decades, building a reputation as a household brand in the country,” said Watsa.
Meanwhile, MCIS Chief Executive Officer Kevin Jones said the business transfer augured well for MCIS as it would pave the way for the life insurance business to establish itself on a stronger footing to compete with market players.
Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. — Bernama
