Fairfax to acquire Malaysian general insurance business

Fairfax Financial Holdings Limited, through its wholly owned subsidiary The Pacific Insurance Berhad, has entered into a business transfer agreement to acquire a Malaysian insurer.

Toronto-based Fairfax Financial reports that the agreement with MCIS Insurance Berhad and Koperasi MCIS Berhad will see it acquire the general insurance business of MCIS, an established life and general insurer in Malaysia, with the transaction expected to close in the first quarter of 2015.

MCIS had more than US$55 million in gross written premiums in 2013 for its general insurance business, notes a statement from Fairfax Financial Holdings, a financial services holding company that, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

On closing, the general insurance business of MCIS will integrate with Pacific Insurance and become part of the Fairfax Asia group under the leadership of Ramaswamy Athappan, the statement notes.

“MCIS has a very strong presence in the Malaysian insurance sector and this is a great opportunity for us to expand our operations in the region,” says Prem Watsa , Fairfax’s chairman and CEO.

The transaction is subject to customary closing conditions, including court approval.