Liberty Mutual Insurance will be applying for regulatory approval to acquire Malaysian insurer AmGeneral Insurance Berhad (AmGeneral).
Following the merger, if approved, of Liberty Insurance Berhad with AmGeneral, the combined entity will become the largest auto insurer and second-largest property and casualty insurer in Malaysia, based on 2020 data.
AmGeneral is currently 51%-owned by AmBank Group and 49%-owned by Insurance Australia Group (IAG).
Subject to receiving appropriate regulatory approvals, Liberty Insurance Berhad will acquire 100% shares of AmGeneral, and AmBank Group’s share of the sale proceeds will be in the form o cash and consideration shares, which will result in AmBank Group holding a 30% interest in the Liberty Insurance Berhad and AmGeneral businesses.
As part of the transaction, the prospective merged entity will enter into an exclusive 20-year bancassurance partnership with AmBank Group to distribute general insurance products.
“Expanding and investing in international insurance markets is instrumental in our aspiration to become a leading global property and casualty insurance company,” said Liberty Mutual President, Global Retail Markets, Jim MacPhee.
AmGeneral serves the Malaysian insurance market through approximately 1,400 employees at 33 branch locations.
Based in Kuala Lumpur, Liberty Insurance Berhad has approximately 450 employees at six regional offices and 24 branches across Malaysia.