NU Online News Service, Oct. 7, 2:20 p.m. EDT
The ACE Group of insurance and reinsurance companies said it has signed a definitive agreement to acquire 100 percent of Jerneh Insurance Berhad, a general insurance company in Malaysia, for approximately $200 million.
Established in 1970, Jerneh provides insurance products including fire, marine, aviation, motor, engineering, household and accident and health. Jerneh is a recognized name in Malaysia, ACE said.
ACE said the proposed acquisition price is subject to adjustment based on the book value of Jerneh Insurance Berhad at the transaction's closing. The transaction is expected to occur during the fourth quarter of this year and is contingent on shareholder approval and other closing conditions.
"The acquisition of Jerneh will provide ACE with a well-developed, multi-channel distribution business characterized by strong bank assurance relationships, an agency force of nearly 1,300 and 19 branches for greater direct consumer access," said John Keogh, chairman of insurance–overseas general. "Jerneh is very complementary to ACE's existing business in Malaysia, and with enhanced local presence and increased access to the commercial middle market, we will now be well positioned as one of the top general insurers in the country."
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