(MENAFN) ING Groep NV has agreed to sell its insurance unit in Malaysia to Hong Kong-based AIA Group Ltd., the third-largest Asia-based insurer, for USD1.7 billion, Bloomberg reported.
The acquisition will combine ING's operations, the third- largest in Malaysia, and AIA's existing business, the fourth biggest, to create the No. 1 life insurer in the country, AIA said in a statement.
AIA said the deal will increase its profits from Malaysia to 13 percent from 8 percent, AIA added.
The insurer has been seeking to rebound after it was impacted during the financial crisis because of woes at its bailed- out former parent American International Group Inc. (AIG).
AIA CEO Mark Tucker said the strength of AIA's balance sheet means it can grow its existing business as well as buy new assets.
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