Business

Wednesday January 11, 2012

Zurich Insurance to resolve dual-listing issue


By WONG WEI-SHEN

weishen.wong@thestar.com.my

KUALA LUMPUR: Zurich Insurance Co Ltd, which has taken over the life and general insurance businesses of MAA Group Bhd, will resolve the issue of having a dual presence in the insurance sector.

Zurich also owns 40% in MCIS Zurich Insurance Bhd, a situation that goes against banking regulations that prohibit one party from having a controlling stake in more than one financial institution.

Philip Smith

“We are taking this seriously and we know this is important. We even discussed this with Bank Negara Malaysia when we were going through the MAA deal. We are in the process of finding a solution to this,” said Zurich head of special projects, global life Asia-Pacific and Middle East Philip Smith.

He, however, offered no comment on what options are being explored.

“It will take some time to solve,” he said.

However, Zurich is aware that a long period of uncertainty will not be fitting for the stakeholders in MCIS Zurich.

It was reported last year that there are several options that Zurich can consider. It may merge MAA with MCIS Zurich and retain management control of the enlarged entity, or sell MCIS Zurich and transfer its business and expertise to MAA.

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