Great Eastern Holdings takes over Malaysia's Tahan Insurance

Completion of $6.43mln acquisition from Bank Negara through Overseas Assurance Corporation Malaysia expected on fourth quarter.

The RM15 million (S$6.43 million) acquisition of Tahan Insurance by Singapore listed Great Eastern Holdings has been given approval by Bank Negara. The takeover will be completed by Great Eastern Holdings wholly owned Malaysia insurance company, Overseas Assurance Corporation Malaysia (OACM), who already operate in the Malaysian general and life insurance market.

Bank Negara, Malaysia’s central bank, took control of Tahan Insurance after the previous Malaysian owners, namely Idaman Uggul Bhd, were unable to meet the Malaysian Central bank’s capital threshold requirements.

Bank Negara has been looking for prospective buyers since it took control of Tahan Insurance, with numerous interested parties, including Fairfax Asia, Tokio Marine Asia and Allianz Malaysia, all failing to negotiate terms.

In May 2009, Pricewaterhouse Coopers (PwC) were instructed by Bank Negara Malaysia to find buyers for the general insurer Tahan Insurance, with Great Eastern Holding finally negotiating a deal in August 2010. The potential purchase of Tahan Insurance is still subject to final approval by regulators, but the deal is expected to be completed by the fourth quarter of this year.

Great Eastern Holdings will complete the acquisition of Tahan Insurance through its life and general insurance subsidiary Overseas Assurance Corporation Malaysia (OACM), a wholly owned Malaysian enterprise. The acquisition is expected to cost Great Eastern Holdings approximately RM15 million (S$6.43 million) and further cement OACM’s presence in the Malaysian insurance industry. This will mean that OACM will obtain an increased number of policyholders in the Malaysian insurance industry and gain access to Tahan range of insurance products, which include; motor, health, medical care and travel insurance.

View the full story in International Insurance News.