KUALA LUMPUR (July 26): Insurer AIA Bhd (AIA Malaysia) will make "a minority equity investment" in TNG Digital Sdn Bhd, the owner of Touch 'n Go eWallet, confirming a report by theedgemarkets.com. It did not disclose the exact stake that AIA would take nor other terms of the deal.
Under the strategic partnership, AIA will provide "innovative and personalised digital insurance solutions to meet the protection needs of over 16 million Touch 'n Go eWallet customers nationwide", it said in a joint statement today.
The collaboration with TNG Digital would allow AIA to offer Touch 'n Go eWallet customers insurance solutions that they can purchase both directly online as well as through AIA’s existing distribution channels — including its 19,000-strong agency force.
Earlier, theedgemarkets.com reported, quoting sources, that AIA's participation in TNG Digital values the latter at about US$700 million or approximately RM3 billion. "Besides AIA, other shareholders of TNG Digital are Touch 'n Go, which is a wholly-owned unit of banking giant CIMB Group Holdings Bhd, China’s Ant Group and New York-based investment firm Bow Wave Capital Management," the report stated.
"Today’s announcement marks the continuation of our digital transformation journey and ambition to reach new customer segments using online platforms. More importantly, it reinforces our commitment to bringing new and innovative products to market in this increasingly digital world,” AIA Malaysia chief executive officer (CEO) Ben Ng said in the statement.
“The need for insurance continues to heighten in the midst of the pandemic. We must constantly look to expand and give Malaysian consumers greater choices, enabling them to obtain the right coverage they need across different stages of their lives, in any way that they prefer, and at the right time,” he added.
Touch 'n Go group CEO Effendy Shahul Hamid said: “Insurance is a key pillar for us as we continue to expand into financial services, and we look forward to collaborating with AIA to disrupt the segment and bring better and more relevant products and services to Touch 'n Go eWallet users.
“We also look forward to AIA’s strategic participation as a shareholder of the Touch 'n Go eWallet company. Their involvement coincides with our continued evolution into deeper areas of financial services," he added.