TEXT-S&P:No rating impact on AIA,AIA Bermuda
(The following statement was released by the rating agency)
Oct 11 - Standard & Poor's Ratings Services said today that its ratings and outlook on American International Assurance Co. Ltd. (AIA; local currency AA-/Stable/--; cnAAA/--) and American International Assurance Co. (Bermuda) Ltd. (AIAB; local currency AA-/Stable/--; cnAAA/--) are unaffected by the AIA Group's recent announcement that it plans to pay Euro1.336 billion (US$1.73 billion) in cash to acquire a Malaysian insurer. In our view, the transaction will not have a material impact on the group's credit profile, and therefore we don't expect the acquisition to change our assessment of the overall business and financial risk profiles of AIA and AIAB. The companies' strong capital position and business profiles should continue to support the ratings.
AIA Group announced on Oct. 11, 2012, that it will acquire the entire share capital of ING Management Holdings (Malaysia) Sdn. Bhd. (not rated) from Netherlands-based ING Insurance Asia N.V. (not rated). The proposed transaction does not include the shares in IFB Management Holdings Sdn. Bhd. The proposed transaction is subject to approvals from Bank Negara Malaysia , the Minister of Finance of Malaysia, the Securities Commission of Malaysia, and a statement of no objection from the Dutch central bank. AIA targets to complete the acquisition by the first quarter of 2013.