KUALA LUMPUR: Liberty Mutual will be applying for regulatory approval to acquire Malaysian insurer AmGeneral Insurance Bhd (AmGeneral).
Subject to receiving appropriate regulatory approvals, Liberty Insurance Bhd will acquire 100% shares of AmGeneral, while AmBank Group’s share of the sale proceeds will be in the form of cash and consideration shares.
AmGeneral is currently 51%-owned by AmBank Group and 49%-owned by Insurance Australia Group (IAG).
This will result in AmBank Group holding a 30% interest in the Liberty Insurance and AmGeneral businesses.
The AmGeneral and Liberty Insurance operations will, at a subsequent date, be formally merged. Following the merger, it is expected that the combined entity will become the largest motor insurer and second-largest general insurer in Malaysia, based on 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.
“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 global retail markets East president and chief operating officer Matt Nickerson.
He added, “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 motor and a growing business in additional product lines will create a best-in-class insurance operation.”
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, as well as its fast-growing digital and direct capabilities.
KL-based Liberty Insurance has approximately 450 employees at six regional offices and 24 branches across Malaysia, which distributes its personal, commercial and other product lines through multiple channels, including a 2,000-agent force.
Liberty Mutual, which has been in business since 1912 and headquartered in Boston, is today the sixth largest global property and casualty insurer based on 2020 gross written premium. It ranks 71st on the Fortune 100 list of largest corporations in the United States based on 2020 revenue, with US$43.8bil (RM185.82bil) in annual consolidated revenue as of Dec 31 last year.
It employs over 45,000 people in 29 countries and economies around the world, offering a wide range of insurance products and services, including personal automobile, homeowners, specialty lines, reinsurance, commercial multiple-peril, workers compensation, commercial automobile, general liability, surety, and commercial property.
Citigroup, Inc acted as financial advisor to Liberty Mutual in the transaction.