ACE Group Reaches Agreement to Acquire Jerneh Insurance Berhad in Malaysia

NEW YORK--(BUSINESS WIRE)-- 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.

Cautionary Statement Regarding Forward-Looking Statements:

All forward-looking statements made in this press release, related to the proposed acquisition of Jerneh Insurance Berhad or otherwise, reflect ACE’s current views with respect to future events, business transactions and business performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. For example, ACE’s forward-looking statements related to Jerneh Insurance Berhad and the anticipated acquisition could prove incorrect if the transaction were to not close, if Jerneh Insurance Berhad and its subsidiaries were to perform differently than currently expected by ACE or if anticipated expense-related efficiencies are not realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The ACE Group
Investors:
Helen Wilson, 441-299-9283
[email protected]
or
Media:
Stephen Wasdick, 212-827-4444
[email protected]
or
Michele Anne Minjoot, 65-6398 8708
[email protected]

Source: The ACE Group