Liberty Mutual is looking to expand its presence in Malaysia with a planned acquisition of AmGeneral Insurance Berhad. Liberty will be applying for regulatory approval to acquire the Malaysian insurer.
The current owners of AmGeneral are AmBank Group (51%) and Insurance Australia Group (49%). Liberty Mutual’s Malaysian company, Liberty Insurance Berhad, will acquire 100% of AmGeneral in this expansion move. It is proposed that 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 then be subsequently merged at a later date for operational synergy. This combined entity from the merger is expected to be the largest motor insurer and 2nd 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’s Global Retail Markets East President & COO, Matt Nickerson. “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 its 33 branches and about 1,400 employees. As a top 3 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.
This acquisition by Liberty is still subject to receiving appropriate regulatory approval. Citigroup, Inc. is acting as financial advisor to Liberty Mutual in this transaction.