ING to sell Malaysian insurance business to AIA Group for $1.73 bn

Dutch banking giant ING yesterday agreed to sell its Malaysian insurance business to Pan Asian insurer AIA Group Ltd, for $1.73 billion in cash.

Hong Kong-listed AIA, partly owned by the US bailed-out insurer, American International Group, said that the acquisition will make it the leading insurance provider by premiums in the "high-growth Malaysian market."

The sale includes its life insurance business, its employee benefits business and its 60-per cent stake in ING Public Takaful Ehsan Berhad.

ING is a leading life insurer in Malaysia offering a complete suite of insurance products, including life, general, employee benefits and Takaful - a joint venture with Public Bank Berhad, Malaysia's third-largest bank, and Public Islamic Bank Berhad, one of Malaysia's top 5 Islamic banks.

ING's insurance businesses in Malaysia serve more than 1.6 million customers through approximately 1,200 employees and approximately 9,200 tied agents.

The Amsterdam-based financial services firm said that its Investment Management's funds management business in Malaysia is not part of the transaction and the deal does not impact its Asian banking activities.