TEXT-Fitch: No rating impact on Pacific & Orient Insurance from Sanlam's buy plan

(The following statement was released by the rating agency)

Sept 19 - Fitch Ratings says there is no impact on Pacific & Orient Insurance Co. Berhad's (POI) Insurer Financial Strength 'BBB' Rating (Stable) from Sanlam Limited's (Sanlam; 'AA-(zaf)'/Stable) proposed acquisition of a 49% stake in the Malaysian insurer.

Pacific & Orient Berhad (POB), POI's immediate parent, said it is in preliminary negotiations on the possible sale of a 49% interest in POI to Sanlam after the grant of consent by Bank Negara Malaysia. Sanlam is a diversified financial services group based in South Africa offering insurance and financial services to individuals and institutional clients.

In view of POB's controlling equity stake after the sale, Fitch does not expect the proposed acquisition to result in a material change in POI's business strategy, capital management plan and financial performance. Fitch will continue to monitor the transaction and evaluate its implications to the credit profile of POI if and when the sale is completed.