MNRB Holdings Berhad, a Malaysian investment holding company, has announced a conditional share purchase agreement to acquire the remaining 80% equity interest in Labuan Reinsurance (L) Ltd for approximately USD100.69 million in cash.
Currently, Labuan Re operates as an associate company of Malaysian Reinsurance Berhad, MNRB’s wholly-owned subsidiary, which holds a 20% stake.
Following the completion of the transaction, Malaysian Re will retain its existing 20% share in Labuan Re, while MNRB will directly hold the newly acquired 80%, making Labuan Re a wholly-owned subsidiary of MNRB.
Labuan Re is an offshore reinsurer based in the Labuan International Business and Financial Centre and underwrites general reinsurance and general retakaful business across multiple markets.
Through its wholly-owned subsidiary, Labuan Re Underwriting Limited (LRUL), the company also participates in the Lloyd’s market, providing access to broader and more specialised underwriting opportunities and international risk pools.
Labuan Re’s business is supported by three primary income streams: underwriting, reinsurance and retakaful business, participation in Lloyd’s through LRUL, and investment income.
For the latest audited financial year ended 31 December 2024, the company recorded a profit after tax of approximately USD26.66 million and net assets of approximately USD197.54 million, reflecting a stable earnings profile and sizable asset base.
The acquisition of Labuan Re strengthens MNRB’s international reinsurance growth and aligns its global competitiveness and optimises capital deployment across its reinsurance and retakaful operations.
Furthermore, the transaction offers an attractive, disciplined valuation at roughly 0.88 times Labuan Re’s adjusted tangible net asset value as at 31 December 2024.
Commenting on the proposed acquisition, Dato’ Sulaiman Mohd Tahir, Chairman of MNRB, said: “This acquisition is a meaningful step in MNRB’s growth journey and reflects our confidence in the long-term potential of Labuan Re as part of the Group. Labuan Re has built a credible presence in the international reinsurance market, and we believe that bringing it fully within MNRB will create a stronger platform for future growth.
“As a Group, we remain focused on building scale responsibly, strengthening our regional relevance and ensuring that our capital is deployed in a manner that supports sustainable value creation. This transaction is aligned with that direction and reinforces our commitment to growing MNRB as a stronger and more resilient reinsurance and retakaful group.”
