KUALA LUMPUR (May 10): Generali Group, one of the largest global insurance providers based in Italy, aims to narrow the insurance gap for the underserved market in the country through its integrated unified brand, Generali Malaysia.

Generali Malaysia was recently integrated following the acquisition of a controlling majority stake in Affin Bank Bhd’s general insurance arm AXA Affin General Insurance Bhd (AAGI), and 100% purchase of MPI Generali Insurans Bhd from its joint-venture partner Multi-Purpose Capital Holdings Bhd (MPCHB).

“We have made Malaysia our home. We are here to stay and our ambitions lies beyond the economic frontier,” Generali Insurance Malaysia Bhd chief executive officer and country head Fabrice Benard said in his keynote speech at the launch of Generali Malaysia on Wednesday (May 10).

He said Generali Malaysia is committed to shaping a safer and more sustainable future, making sure no one is left behind.

“One of our key priorities is to narrow the insurance gap for the underserved market, by offering inclusive products and innovative distribution methods,” he said.

At a press conference, Benard said that the commitment to providing affordable insurance for the underserved market will be the group’s long term plan.

“If we look at the Malaysian market today, no one (insurance provider) has already been successful in doing that (insurance for underserved groups). This is the reason why there is low penetration in the market (in Malaysia).

“When we did the acquisition in Malaysia, it was a commitment that we made to the Ministry of Finance (MOF) that we will spend our time and energy for our long term agenda. “We really want to be able to help and serve the B40 group (bottom 40% income group),” he said.

However, Generali Malaysia has not finalised its strategy in this regard, he said.

In 2022, Generali Malaysia registered RM2.3 billion in gross written premium for general insurance segment, while its life insurance saw more than RM60 million annualised premium equivalent.

Generali Malaysia also expects its acquisition of AAGI will further expands its collaboration with the bank in the retail and small and medium enterprises (SME) segments.

“We really see a huge opportunity to work with Affin Bank. Of course, Affin is focusing on retail and SME, and these are the areas where we see ourselves collaborating together," said Generali Life Insurance chief executive officer Rebecca Tan. “So it is either by way of branch network or by way of digital footprint, where we can reach out to wider audiences, and this is how we will approach (it) with Affin.”

On April 1, Generali Asia NV, a subsidiary of Generali Group, completed the merger and acquisition (M&A) of AAGI at a value of RM1.29 billion, making it one of the largest M&A transactions in Malaysia in recent years.

Generali Malaysia currently holds a 70% stake in AAGI, while Affin controls the remaining 30% of the enlarged insurance company.

Generali has been active in Malaysia since 2015, when it acquired a 49% stake in MPI Generali from MPCHB. Last year, Generali acquired full ownership of MPI Generali.