Upon completion, the expected acquisition will make Liberty Mutual the largest auto insurer in Malaysia.
On the heels of last week’s announcement of its acquisition of State Auto, rendering it the second-largest independent agency carrier in the country, this week Liberty Mutual sets its sites on Malaysia. More specifically, the Boston-based insurer has announced that it will be applying for regulatory approval to acquire the Malaysain insurer AmGeneral Insurance Berhad (AmGeneral). AM General’s ownership currently is split between AmBank Group which owns 51% and Insurance Australia Group (IAG) which has the remaining 49%-ownership.
According to the terms of the deal, Liberty Insurance Berhad will acquire 100% shares of AmGeneral with AmBank Group’s share of the sale proceeds paid in the form of cash and consideration shares. As a result, AmBank Group will hold a 30% interest in the Liberty Insurance Berhad and AmGeneral businesses after completion of the sale. Ultimately, it is expected that the AmGeneral and Liberty Insurance Berhad operations will formally merge at a later date. As part of the transaction, the proposed merged entity also will enter “…into an exclusive 20-year bancassurance partnership with AmBank Group to distribute general insurance products.”
As a result of this merger, the newly created company is expected to become both the largest auto insurer and the second-largest P&C insurer in Malaysia.
“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. “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.”
More about AmGeneral
AmGeneral serves the Malaysian insurance market through approximately 1,400 employees at 33 branch locations. A top three motor insurer with a growing business in additional product lines, the company distributes its personal and commercial insurance products under the AmAssurance and Kurnia brands through more than 6,000 agents, brokers, car dealers, franchises and affinity partners, and its fast-growing digital and direct capabilities.