U.S primary insurer Liberty Mutual Insurance has applied for regulatory approval to acquire Malaysian insurer, AmGeneral Insurance Berhad (AmGeneral).
AmBank Group currently owns 51% of AmGeneral, with the other 49% owned by Insurance Australia Group (IAG).
Liberty Insurance Berhad expects to acquire 100% shares of AmGeneral, and AmBank Group’s share of the sale proceeds will be in the form of cash and consideration shares.
This will result in AmBank Group holding a 30% interest in the Liberty Insurance Berhad and AmGeneral businesses.
The AmGeneral and Liberty Insurance Berhad operations will be formally merged. Following the merger, it is expected that the combined entity will become the largest auto insurer and second-largest property and casualty insurer in Malaysia based off of 2020 data.
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.
Liberty Mutual President, Global Retail Markets, Jim MacPhee commented: “Expanding and investing in international insurance markets is instrumental in our aspiration to become a leading global property and casualty insurance company.
“Liberty Mutual’s mission to help people embrace today and confidently pursue tomorrow is well aligned with AmBank’s mission to help individuals and businesses in Malaysia grow and win together.
“Combining Liberty’s global capabilities with AmGeneral’s leading market share in auto and a growing business in additional product lines will create a best-in-class insurance operation.”