INSURANCE AUSTRALIA GROUP INCREASES STAKE IN MALAYSIAN JV.

SYDNEY, Dec 1 Asia Pulse - The Insurance Australia Group Ltd (ASX:IAG) has expanded its footprint in Asia, increasing its interest in its joint venture with Malaysian insurer AmAssurance to 49 per cent.

IAG, which had held a 30 per cent interest in AmAssurance, said the increase in its interest was in line with its strategy to strengthen its position in select Asian general insurance markets.

The move follows an announcement last week by IAG that it had entered into an agreement with the State Bank of India (SBI) for a general insurance venture.

IAG said the Malaysian restructure will be effected by splitting AmAssurance into general insurance and life insurance components.

IAG will then sell its 30 per cent interest in the life insurance business and increase its interest in the general insurance business to 49 per cent - the maximum allowable under Malaysia's foreign investment rules.

IAG said the restructure would result in a net profit of around $35 million on the sale of the 30 per cent interest and IAG's overall investment in Malaysia would increase by around million.

The business will be renamed AmG ...