We refer to the latest update in respect of Malaysia Competition Commission (“MyCC”)’s notice of its proposed decision that the Company’s general insurance subsidiary, Allianz General Insurance Company (Malaysia) Berhad (“AGIC”) and all the other 21 general insurers who are members of Persatuan Insurans Am Malaysia (collectively referred to as “Parties”) have infringed one of the prohibitions under Part II of the Competition Act 2010 (“CA”) as announced via the Quarterly Report of the Company on 27 August 2020.

The Board of Directors of the Company wishes to announce that AGIC’s legal advisers had on 25 September 2020 received MyCC’s Decision that the Parties have infringed the prohibition under section 4 of the CA and imposes on each of the 22 general insurers financial penalties for the said infringement.

In view of the impact of the Covid-19 pandemic, MyCC has granted a reduction of 25% of the financial penalties imposed on the 22 general insurers and has granted them a moratorium period of up to 6 months for the payment of the financial penalties to be made by 6 equal monthly instalments. The financial penalty imposed on AGIC, taking into account the 25% reduction amounts to RM18,549,595.97.

AGIC is currently in consultation with its legal advisers and will take all appropriate actions to defend its position that it has not infringed section 4 of the CA.

This announcement is dated 28 September 2020.