AEON Credit Service, a listed consumer finance company, announced that it has obtained approval from Bank Negara Malaysia to acquire 100% interest in insurance and takaful broking firm Insurepro for RM1.7 million.
The shares sale is expected to be completed by the end of October 2021, with Insurepro joining AEON Credit as a wholly-owned subsidiary upon completion, according to the disclosure.
Insurepro, a private limited company incorporated in Malaysia under the Companies Act, 1965 and licensed by the central bank, is principally engaged in Insurance and Takaful broking business.
Its primary business focus is to provide comprehensive insurance services to strategic and specialised industries in Malaysia, particularly in the state of Sarawak.
AEON Credit said the acquisition will allow it to grow its insurance business through the insurance broking platform under Insurepro for distribution of both commercial and personal insurance products, including life insurance products.
The company plans to offer insurance products from multiple Insurers and Takaful Operators through Insurepro to meet the needs of both consumer and business sectors in Malaysia.
In addition, the company aims to increase its product portfolio and generate positive earnings.
“Currently, the overall income earned from the insurance is less than 5% of the company’s total income and the company sees a huge potential for us to expand into, as we believe that there are prospective business opportunities due to the rising demand of insurance,” AEON Credit said.
The newly acquired subsidiary will be transformed into a Digital Insurtech company. The subsidiary’s main strategy is Direct-to-Consumer (DTC) approach.
“With the new Insurtech availability in the market, Insurepro can offer vast insurance and protection schemes to consumers via online tools with more pricing and product options as an advantage of being a broker,” according to the disclosure.
Furthermore, AEON Credit said it will provide a one-stop service to its customer base of more than three million mainly from the B40 group as well as to enhance its service offerings as compared to aggregators with stricter compliance to central bank guidelines. – InsuranceNewsAsia.com