AIA first off the block on formal insurance segregation
Wednesday, 5 March 2014 00:24
Calls EGM on 27 March; Values general insurance biz at Rs. 1.89 b
In pursuance of section 53 of the Regulation of Insurance Industry (Amendment) Act No. 03 of 2011, to segregate the life and general insurance business and to be carried out as two separate entities, AIA Insurance announced that the company is planning to transfer its General Insurance business other than entity specific taxes to a newly incorporated wholly owned subsidiary of the company (subject to approval).
As per the audited financial statements the general insurance business of the company represented a net book value of Rs. 1.89 billion as at 31 December 2013.
The anticipated transfer date for the afore stated proposed transfer of the General Insurance business will be during 3Q2014E and the General Insurance business would be transferred at a value equivalent to the net book value of such general insurance business as at the date of transfer, which will not exceed Rs. 2.4 billion.
An Extraordinary General Meeting will be convened on 27 March 2014 for the purpose of obtaining shareholder approval by passing a special resolution.