AIA Bhd. is going to transfer its general business to AIA General Berhad to comply with the law (Section 16 of the Financial Services Act ("FSA")) which provides that a composite licensed insurer (such as AIA Bhd.) shall not carry on both a life and general insurance business.
The Proposed Transfer will therefore separate the life and general insurance business of AIA Bhd. into 2 companies moving forward, i.e. the life insurance business which will be carried on by AIA Bhd. and the general insurance business which will be carried on by AIA General Berhad (a wholly-owned subsidiary of AIA Bhd.).
The Proposed Transfer will be effected by way of a business transfer scheme ("Scheme") in accordance with Section 100 of the FSA. An application will be submitted to the High Court in Malaya (sitting in Kuala Lumpur) ("High Court") for a confirmation of the Scheme. Once approved by the High Court via the granting of a vesting order, the Proposed Transfer will come into effect on the effective date.
We need the approval of the High Court. We are currently preparing for this and plan for the Proposed Transfer to be effective from 1 July 2018 onwards.
As a customer, vendor or business partner of AIA Bhd.’s general insurance business, you will not be affected by the proposed transfer. All contracts, arrangements and agreements that you have in relation to our General insurance business will be vested in AIA General Berhad on the same terms and conditions. AIA General Berhad will carry out all AIA Bhd.’s duties and obligations under the contract, arrangement and agreement. We expect this to be from 1 July 2018 onwards.
AIA General Berhad is a wholly owned subsidiary of AIA Bhd.
Moving forward, AIA General Berhad will continue providing the same services that its general insurance customers, vendors and partners are receiving now from AIA Bhd.
There will be no change to your contracts. All general insurance business contracts with AIA Bhd. will be “vested” in AIA General Berhad through the Court Order meaning that AIA General Berhad will “step into AIA Bhd.’s place” for these contracts and continue to honour them.
Yes, AIA Bhd. will continue to be in operations and will carry on the life insurance business. We will work with our employees, clients and all of our partners to coordinate among ourselves in order to deliver the best outcomes for you and we ask you for your continued support during this transition period.
Yes. Once AIA Bhd. and AIA General Berhad have obtained the approval from the High Court, this will be advertised in the New Straits Times and Berita Harian, published in our website and also notified to regulators, associations and selected business partners.