Ace to Integrate Two Units in Malaysia

Ace Insurance said it will integrate its two operating units in Malaysia: Ace Synergy Insurance Berhad and Jerneh Insurance Berhad.

The consolidation follows Ace's purchasing all of the outstanding shares of its joint venture ASIB from Advance Synergy Capital Berhad last week, and Ace's acquisition of JIB in December 2010. The consolidation is expected to be completed in the first quarter of 2012.

Lim Sun will assume the role of country president, and will be responsible for the overall local operations and a key focus on the continued growth and development of the agency distribution channel. Raj Nanra will take on the role of executive vice president, with emphasis on corporate and business development, the company said in a statement.

Last week, Ace INA International Holdings Ltd. acquired the full ownership of Ace Synergy for $39 million cash (BestWire, June 21, 2011).

The Ace Insurance franchise in Asia/Pacific comprises a network of operations serving Australia, Hong Kong, Indonesia, Korea, Macau, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Products include its core property/casualty and accident and health lines, as well as its growing small to medium commercial business and personal lines businesses.

Earlier this month, Zurich Insurance Co. Ltd. purchased Malaysian Assurance Alliance Berhad, a Malaysian composite insurer, from MAA Holdings Berhad for $115 million (BestWire, June 20, 2011).

Ace Group's rated insurance subsidiaries currently have Best's Financial Strength Ratings of A+ (Superior).

Shares of Ace (NYSE: ACE) were trading at $65.42 a share on the morning of June 29, up 1.10% from the previous close.

(By Meg Green, senior associate editor, BestWeek: [email protected])