Fairfax Financial Holdings Ltd (TSE:FFH), the financial services holding company headed by Prem Watsa announced its acquisition of a Malaysian general insurance business today.
The Pacific Insurance Berhad, a wholly-owned subsidiary of Fairfax Financial Holding Ltd (TSE:FFH) entered into a business transfer agreement with MCIS Insurance Berhad and Koperasi MCIS Berhad to acquire the general insurance business of MCIS.
MCIS is an established life and general insurance company in Malaysia. It has more than $55 million in gross written premiums for its general insurance business last year.
“We are thrilled to have the general insurance business of MCIS join the Fairfax group and we look forward to working with Koperasi MCIS as our new partners in Malaysia. 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,” according to Watsa.
Fairfax Financial Holdings Ltd (TSE:FFH) said the general insurance business of MCIS will be integrated with Pacific Insurance and will become part of Fairfax Asia group. The deal is subject to customary closing conditions including a court approval. The Canadian financial services holding company expected to close the deal in the first quarter of 2015.
Fairfax completed Pethealth acquisition
Last month, Fairfax Financial Holdings Ltd (TSE:FFH) completed its acquisition of Pethealth Inc. (TSE:PTZ) for $100 million. Pethealth is one of the largest medical insurance providers for dogs and cats to pet owners in North America. The company will be led by its new CEO Sean Smith.
Watsa said Pethealth Inc. (TPE:PTZ) has a strong position in the pet insurance and pet related software sectors.
Watsa bullish on India’s economic growth
Watsa established a $1 billion venture fund that will focus on brick-and-mortar businesses in India. His new fund showed that he is bullish on the economic growth of India.
“We need to open India and the economy up and let people come. I see unlimited opportunity. Education will be huge in India, we need more education.We believe India is going to have economic growth in excess of 10%,” although he did not provide a time frame,” said Watsa during a recent interview with the Times of India.
