Kuala Lumpur, 10 July 2006 - Mitsui Sumitomo Insurance (Malaysia) Bhd has merged with Aviva Insurance Berhad on 1st July 2006 and the merged entity will adopt MSIG as the new brand name. The registered legal entity will, however, remain Mitsui Sumitomo Insurance (Malaysia) Bhd.
With the completion of this merger, MSIG will emerge as the second largest general insurance company in Malaysia based on gross direct premiums total of RM629.8 million for the calendar year 2005.
MSIG will also emerge as the top Malaysian insurer for the fire and marine cargo insurance categories with a market share of 11.84 per cent and 21.67 per cent respectively. It also has strong presence in personal accident, travel, engineering and other major classes of general insurance.
MSIG Chief Executive Officer Song Yam Lim said the merger would result in a stronger company, leveraging on the strengths of Mitsui Sumitomo Insurance and Aviva Insurance, backed by over 100 years of general insurance experience in this country.
“It is a union of two strong and profitable insurance companies. We are confident of growing our business by 7 per cent per cent this year, underpinned by our strong combined resources, including an agency force of over 1,500 and a nationwide network of 15 branches, including Sabah, Sarawak and Brunei,” he added.
He said the merger is described as a “Union of Strengths” and this is demonstrated by MSIG’s strong corporate customer base, including many Japanese companies operating in Malaysia whilst Aviva had made a name for itself in the SME market, personal-line and bancassurance insurance products.
“We have the best of both worlds and our collective experience and resources will place MSIG in a stronger position to serve a more diverse category of customers,” he added.
Mr Song said the current focus is to integrate the two companies’ at every platform whilst ensuring it is business as usual. He also assures that the merger and name change does not affect or alter the protection and benefits provided under the terms and conditions of all current policies. “We are committed to ensuring that the level of service our policyholders have come to expect is maintained and that their interests are safeguarded”.
The merger kicked off as a result of Mitsui Sumitomo Insurance Co. Ltd of Japan‘s acquisition of Aviva plc’s general insurance operations in the Asian region in September 2004. The merger was approved by Bank Negara in January 2006 after Mitsui Sumitomo Insurance Co Ltd of Japan completed the purchase of Aviva plc’s 51 per cent stake in Aviva Insurance Bhd last September.
For the year ended 31 December 2005, the two Malaysian operations saw a combined pre tax profit of RM 137.8 million.
