AIA Group to form Malaysia subsidiary

AIA Bhd is part of the group’s strategy on organic growth in Asia.

AIA Group will bank on organic growth to spur its business in Asia and via this strategy make its subsidiary, AIA Bhd, one of the top three largest insurance providers in the country in terms of new business premiums over the next three years.

For the same period, the insurance group is looking at its Malaysian operations to contribute about 10% to its total revenue from 6% currently.

At present, AIA Bhd is among the top three and four insurance companies in terms of total revenue and new business premiums respectively in the local market.

The group's chief executive and president Mark Tucker said Malaysia was an important market for the group in the region as it was AIA's sixth largest market in terms of new business premiums. AIA is present in 15 markets in Asia.

He told StarBizWeek this after making a brief stop at the Sultan Abdul Aziz Shah airport here after attending AIA Malaysia's Mega Sales Congress at Genting Highlands before flying off to Hong Kong.

For the financial year ended November 30, 2010, AIA Bhd registered a 39% growth in the value of new business from RM99mil ($32.75 million) to RM126mil ($41.68 million).

View the full story in The Malaysian Star.