Insurance Australia Group (IAG) continues to grow in Asia, with a $480 million acquisition making its Malaysian joint venture that country’s largest general insurer.

AmG Insurance Berhad, which is 49 per cent owned by IAG, was Malaysia’s fourth largest motor insurer and eighth largest general insurer.

And it has reached agreement to buy Kurnia Insurans Berhad, Malaysia’s largest motor insurer, for $483.7 million, IAG said on Friday.

IAG will pay 49 per cent of the price, approximately $235 million.

The acquisition will give make AmG Malaysia’s largest general insurer, with 13 per cent of the market, IAG managing director Mike Wilkins said.

“This is another important step in IAG’s strategy to boost its Asian footprint, contributing to the Asia division’s target of representing 10 per cent of IAG’s gross written premium by 2016, on a proportional basis,” he said in a statement.

Malaysia’s general insurance market grew by 7.8 per cent in calendar 2011, in local currency terms, and is expected to grow by six per cent each year for the next three years.

The acquisition requires approval from shareholders of Kurnia’s parent company, and completion of the deal is expected in the second half of calendar 2012, IAG said.

IAG shares closed three cents higher at $3.45.