KUALA LUMPUR: AXA SA's Malaysian subsidiary AXA Affin General Insurance Bhd (AXA Affin GI) has received Bank Negara Malaysia's approval to acquire 80% of BH Insurance (M) Bhd from Boustead Holdings Bhd and 20% from Felda Marketing Services Sdn Bhd.

In a statement today, AXA said the three parties would soon sign the relevant legal agreements following the obtaining of the central bank's approval via a letter dated Feb 18.

It said integration of the two insurers' business would start after regulatory and legal approvals. The price tags were not revealed.

"This acquisition is important for the long-term growth of AXA in Malaysia," said Jan van den Berg, CEO of AXA Asia General Insurance and board member of AXA Affin GI. "It is also a very good opportunity for us to build a stronger presence for general insurance in Asia."

AXA Affin GI is looking to expand in commercial insurance, given BH Insurance's expertise in the sector.

"The business portfolio and market sectors of the two companies complement each other and the combined strengths will reinforce our position in the market," said AXA Affin GI CEO Jahanath Muthusamy.

"The combined expertise in both retail and commercial business and a larger pool of talent in both companies will enable us to provide better service and product offering to our clients," Jahanath said. "With close to 6% of the market share now, the company has the aspiration to be in the top five position in the very near future."

AXA Affin GI is a joint venture between AXA SA and Affin Holdings Bhd. AXA Affin employs more than 400 people and services its 250,000 customers through 17 offices in Malaysia. It earned a gross written premium (GWP) of RM324.2 million in 2008.

BH Insurance offers a wide range of general insurance solutions for commercial businesses and personal protection. The company has over 300 employees servicing its customers in 14 offices. BH Insurance earned a GWP of RM287.6 million in 2008.