MANILA, Philippines - Maybank ATR Kim Eng Financial Corp. on Thursday said it sold its insurance unit to STI Investments Inc.
In a statement, Maybank said its subsidiary AsianLife and General Assurance Corp. (ALGA) sold its shareholdings in AsianLife Financial Assurance Corp. (ALFA) to STI Investments.
Under the deal, ALGA will sell its 12.24 billion common shares in ALFA for P428.4 million. The price is approximately 1.5 times ALFA’s book value as of December 31, 2011.
However, the deal is still subject to certain conditions, including regulatory approvals.
Manuel Tordesillas, Maybank ATR KE Financial president, said the group will be able to focus on its core business better if it concentrates solely on ALGA.
The company said the disposal of ALFA would not have a limiting effect on ALGA's insurance capability since the latter also has a composite insurance license.