AXA LM builds run-off position with Munich Re Malaysia deal

AXA Liabilities Managers (AXA LM), the non-life re/insurance legacy firm, has acquired the non-life legacy portfolio of Munich Re Malaysia. The portfolio transfer will become effective on October 1, 2019.

The deal was made through AXA LM’s fund (AXA DBIO II), which invests in run-off portfolios and companies, and has been approved by the High Court of Malaya and the necessary regulatory approvals via BaFin and Bank Negara Malaysia.

The company said the outstanding reserves are composed of Malaysian non-life reinsurance business. All related contracts, arrangements and agreements will be vested in AXA DBIO II's risk carrier in Malaysia. However, the family retakaful business will continue to be carried out by Munich Re Malaysia.

Sylvain Villeroy de Galhau, AXA LM CEO, said: "I’m very proud of the exciting work our teams have done to make this complex deal happen. We are very pleased to continue our external development through our fund with this 20th acquisition that strengthens our position as a run-off acquirer. After the acquisition of Emirates Re’s Retakaful business last year, we pursue our international investment strategy, including on the growing Asian run-off market through our hub in Malaysia."

AXA LM was founded in 2001 to proactively manage AXA Group’s non-life reinsurance liabilities. The company also acquires P&C run-off portfolios on behalf of investors through its funds. AXA LM is composed of 170 employees, headquartered in Paris, France, and has teams in the USA, the UK and Switzerland.

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