IAG set to sell SE Asia businesses
Insurance Australia Group is set to sell its four Southeast Asian businesses in deals that could be valued at about USD500 million, under a review of its Asian operations.
IAG, Australia’s biggest general insurer by market share, has ventures in Malaysia, Thailand, Vietnam and Indonesia in Southeast Asia, and could complete the sale process by the third quarter, according to a Reuters report.
Despite years of investments, Asia has proved a challenge for IAG. The insurer posted an underwriting loss in Asia of AUD6 million (USD4.63 million) in its fiscal first half of 2018, although that loss narrowed from AUD9 million in the second half of 2017.
Asia’s overall earnings contribution decreased to AUD10 million in 2017 from AED26 million a year earlier.
A spokeswoman for IAG in Australia said the insurer had announced plans to review Asia strategy, not to exit the region. She declined to comment on whether the company had made a decision to exit those specific markets.