IAG INCREASES STAKE IN MALAYSIAN NON-LIFE OP

Insurance Australia Group (IAG) is to increase its stake in the non-life business of Malaysia’s AmAssurance to 59% from 30%. IAG is also quitting the life assurance part of the business. The change in structure will be achieved by splitting the current AmAssurance joint venture into separate non-life and life components. IAG chief executive for Asia Justin Breheny said that during the 2008 financial year the joint venture’s non-life gross written premiums had grown by 15% in local currency terms, with growth of 10% a year anticipated over the next few years. Completion of the restructuring should take place before he end of the year, according to Mr Breheny. IAG will book a net gain of AUD35m (US$22.4m) as a result of the sale of its life stake. UK-based assurer Friends Provident has agreed to take a 30% stake in Malaysia-based AmLife Insurance Berhad for MYR170m ($46.8m). AmLife’s brand AmAssurance had annualized new life premiums of MYR93m for the financial year to March 31 2008.