Pacific Insurance Berhad (Pacific Insurance), a wholly-owned subsidiary of Toronto-based Fairfax Financial Holdings: (Fairfax), will acquire the business. The transaction is subject to customary closing conditions, including court approval, and is expected to close in the first quarter of 2015.
SEM Chief Executive, Mr Heinie Werth, says: "SEM&'s investment in MCIS was structured to gain exposure to the life insurance operations. Therefore, the disposal of the general insurance business is a key milestone towards the conclusion of SEM';s acquisition of MCIS."
He says the acquisition announcement in April 2014 advised that SEM would not be able to maintain an interest in another general insurance business in Malaysia due to its existing holding in Pacific and Orient Insurance and Malaysian licensing regulations. As a result, MCIS had to sell or find an alternative solution for the general insurance business within pre-determined timeframes.
"This transaction is part of the realignment of the business and enables us to focus on the life insurance business with MCIS going forward, which is in addition to our existing general insurance interest in Pacific&Orient," concludes Werth.