Mergers and acquisitions will continue in 2012

According to PricewaterhouseCoopers, mergers and acquisitions will continue to shake the Malaysian insurance market this year. The poor penetration rate in life insurance and the fragmentation of the non-life market will be the market’s major drivers. In 2009, the government deregulated the shareholding structure by opening the capital of companies to foreigners with up to 70% instead of 49%. Since 2010, four similar operations have been undertaken. Foreign insurers have always directly or indirectly taken part in these movements (Mitsui Sumitomo, ACE, Sompo Japan and AmG Insurance).