APN News

  • Sunday, September, 2021| Today's Market | Current Time: 03:23:36
  • ACE Group Reaches Agreement to Acquire Jerneh Insurance Berhad in Malaysia

    Published on October 7, 2010

    United States: The ACE Group of insurance and reinsurance companies today announced that it has signed a definitive agreement to acquire 100% of Jerneh Insurance Berhad, a general insurance company in Malaysia that is majority owned by Jerneh Asia Berhad, which is listed on Bursa Malaysia Securities Berhad. Established in 1970 and currently a top 10 general insurer in the country, Jerneh is a recognized name in Malaysia and provides a wide range of insurance products that include fire, marine, aviation, motor, engineering, household and accident and health.

    The proposed acquisition price is approximately USD$200 million, subject to adjustment based on the book value of Jerneh Insurance Berhad at the transaction’s closing. Completion of the transaction is expected during the fourth quarter of 2010 and is contingent on approval of the sellers’ shareholders and other closing conditions.

    “The acquisition of Jerneh will provide ACE with a well-developed, multi-channel distribution business characterized by strong bancassurance relationships, an agency force of nearly 1,300 and 19 branches for greater direct consumer access,” said John Keogh, Chairman, Insurance – Overseas General. “Jerneh is very complementary to ACE’s existing business in Malaysia, and with enhanced local presence and increased access to the commercial middle market, we will now be well positioned as one of the top general insurers in the country.

    “There is a strong strategic fit between ACE and Jerneh, which is a respected insurance organization with a sound underwriting culture. Both organizations are specialty product oriented and driven by disciplined underwriting and a strong philosophy on profitability. Together, ACE and Jerneh will build a sustained business for growth in this attractive, fast-growing market.”

    As noted in the company’s previous statement regarding this transaction, the addition of Jerneh will be accretive to ACE’s earnings and book value per share and is expected to meet ACE’s return-on-capital hurdle rate.

    Celebrating 25 years of insuring progress, the ACE Group is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acegroup.com.