KUALA LUMPUR: Malaysian Assurance Alliance Bhd (MAA) hopes to finalise the disposal of its general insurance business to AmG Insurance within the next four to six weeks, said MAA chief executive officer Muhamad Umar Swift.

MAA is also in talks with AmG Insurance for the latter to acquire a 4.9% stake in MAA Takaful Bhd.

“We are drafting the documentations for approval from the authorities. Hopefully, we can make the announcement in four to six weeks.

“We are not only selling the stake, but also the company’s capability,” Muhamad Umar told reporters after the introduction of MAA’s Super Fortune Plan here yesterday.

MAA had last November entered a non-binding memorandum of understanding with AmG for the latter to acquire its general insurance business at a headline price of RM274.8 million, subject to adjustments, representing a price-to-book value of about 2.6 times and the acquisition of a 4.9% stake in MAA Takaful for RM16.2 million.

MAA Holdings Bhd (MAAH) announced last month that it was finalising a business transfer agreement that would be submitted to Bank Negara Malaysia (BNM) for approval.

It recently announced that it had also obtained BNM’s nod to start talks with AmG and Solidarity Closed B.S.C. on the proposed disposal of a stake in MAA Takaful. MAAH and Solidarity Closed hold 75% and 25% of MAA Takaful respectively.

Commenting on the industry, Muhamad Umar said the general insurance market was still robust and sales were still going up despite the global financial crisis.

MAA yesterday introduced its latest endowment plan with a flexible premium paying term of six, 10, 15 and 20 years, which matures at the 50th to 80th birthday of the insured depending on the entry ages.

“We are targeting at RM100 million of premium from this product in the first year of launching. The uniqueness of this product is it guarantees everything and we have received a lot of inquiry,” said MAA vice-president of life business development services Chan Yok Chor.

He added that the product, with sum assured from RM25,000 onwards, was targeted at risk-averse individuals with extra money, aged between 10 and 55 years. The insured could attach riders.