Press Releases

1.Overview of the Alliance

1. (1)Non-Life Insurance Business
   The non-life insurance business portfolio of Hong Leong Assurance Berhad (hereafter “HLA”), a subsidiary of HLFG, will be merged with that of MSIG Insurance (Malaysia) Bhd. (hereafter “MSIGM”), a subsidiary of MSI. As a result, shareholders’ equity of the enlarged MSIGM will be 70%* owned by MSI and 30% owned by HLFG, creating the second largest non life insurance company in Malaysia by premium income.
   • * MSI’s share includes approximately 5% of shares held by minority shareholders.

1. (2)Life Insurance Business
   MSI will purchase 30% of outstanding shares in HLA for the price of RM 940 Million, approximately JPY 25.4 billion, thereby entering the life insurance market in Malaysia holding a stake in a well established life insurance company ranking No.6 by premium income in the market. MSI will second officers and employees, transferring technical know-how on life insurance with more innovative products and underwriting support with the objective of supporting HLA to become a top rank life insurer in Malaysia at an early stage.

1. (3)Specific actions / Objectives of the Alliance
   1. (i) Expanding Insurance Sales through Bancassurance We will expand our sales force of both the non-life and life insurance business through bancassurance at HLFG’s bank subsidiary.
   2. (ii) We will supply distinguished non-life and life insurance products through the synergy effect of MSI and HLFG which will bring together the respective brand strengths, business bases and insurance business know-how, simultaneously MSI aims to further enhance the corporate value of MS & AD Insurance Group.

2.Purpose and Background of the Alliance

1. (1)Malaysia, with a population of approximately 28 million, is a politically stable country experiencing one of the most remarkable growth surges in Asia, also with further growth potential in the insurance market.
   
2. (2)The alliance will, all together, bring about MSI’s expansion in the non-life insurance market and entry into the life insurance market, in the Asian region which is strategically important and considered as one of the growth areas for its overseas business. MSI believes this is a valuable opportunity in establishing a stable business base in the Asian life insurance market.
   • Conversion Rate: 1 Malaysian Ringgit= 27 Yen