NOTICE IN RESPECT OF THE PROPOSED TRANSFER BY AIA BHD. OF ITS GENERAL INSURANCE BUSINESS TO AIA GENERAL BERHAD ("PROPOSED TRANSFER")

1. iNTRODUCTION

By way of background, Section 16 of the Malaysian Financial Services Act ("FSA") provides that a licensed insurer (such as AIA Bhd. ("AIA")) shall not carry on both a life and general insurance business ("Requirement"). For the purposes of complying with this Requirement, we will be embarking on a restructuring exercise to effectively transfer AIA's general insurance business to AIA General Berhad ("AIA General") (a wholly owned subsidiary of AIA) pursuant to the Proposed Transfer.

The Proposed Transfer will be effected by way of a business transfer scheme in accordance with  Section 100(1) of the FSA ("Scheme") and has been approved by Bank Negara Malaysia (with the concurrence of the Minister of Finance) on 27 March 2018. Subject to the High Court further approving the Scheme, the Proposed Transfer is intended to take effect from 1 July 2018. In other words, with effect from 1 July 2018, the corresponding obligations and rights under all contracts with customers, vendors and partners in relation to the general insurance business of AIA will be assumed by AIA General.

2. EFFECTS OF THE PROPOSED TRANSFER

Notwithstanding the Proposed Transfer, both AIA's life and general business will remain fundamentally unaffected by this change and as the shareholder of AIA General, we will continue to provide any support required to ensure a smooth transition of the general insurance business to AIA General during this period. Rest assured therefore, our general insurance customers, vendors and partners can expect the same services it is accustomed to from AIA General moving forward and we look forward to your continued support.  

3. INSPECTION OF THE SCHEME

In the interim, please note that the Scheme will be open for inspection during office hours, for a period of thirty (30) days, starting from 12 April 2018 until 12 May 2018 at our main office and all our branches.

The following FAQ may be of further assistance. 

faqs

Transfer of General Insurance Business

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