KUALA LUMPUR (May 7): The Generali group has completed its acquisition of the 49% stake in Multi-Purpose Insurans Bhd (MPIB), a property and casualty (P&C) insurance subsidiary of MPHB Capital Bhd, pursuant to the agreement signed on Dec 18, 2014.

The acquisition marks Generali’s tenth market entry in Asia after China, Hong Kong, India, Indonesia, Japan, Philippines, Singapore, Thailand and Vietnam.

“We are very pleased with the successful completion of the investment in MPIB. Our expansion into Malaysia is a major chapter that signifies the Group’s commitment to Asia.

“The country and especially its P&C insurance industry offer very promising growth potential to us,” said Generali's head of South East Asia and Hong Kong Terence Wong in a statement today.

The agreement signed also includes a call option exercisable two years after the completion of the acquisition, for an additional 21% stake in MPIB, which will allow Generali to increase its shareholding to 70%, subject to regulatory approval.

The Generali group is among the largest global insurance providers serving 72 million clients in more than 60 countries.

MPHB (fundamental: 1.9; valuation: 0.9) closed unchanged at RM1.92, with a market capitalisation of RM1.37 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)