Boston-based Liberty Mutual Insurance said it will be applying for regulatory approval to acquire Malaysian property/casualty insurer AmGeneral Insurance Berhad, which is currently 51%-owned by AmBank Group and 49%-owned by Insurance Australia Group (IAG).
Subject to regulatory approvals, Liberty Mutual’s subsidiary Liberty Insurance Berhad will acquire 100% shares of AmGeneral, and AmBank Group’s share of the sale proceeds will be in the form of cash and consideration shares, which 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 eventually be formally merged, according to the announcement. Following the merger, Liberty Mutual said the combined entity will be the largest auto insurer and second-largest property/casualty 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 Jim MacPhee, president of Liberty Mutual Global Retail Markets.
AmGeneral serves the Malaysian insurance market through 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.
Based in Kuala Lumpur, Liberty Insurance Berhad has approximately 450 employees at six regional offices and 24 branches across Malaysia. The company distributes its personal, commercial and other products through multiple channels, including a 2,000-agent force.
Liberty Mutual employ more than 45,000 people in 29 countries and economies around the world.As of December 31, 2020, Liberty Mutual had $43.8 billion in annual consolidated revenue.
Citigroup acted as financial advisor to Liberty Mutual in the transaction.
Last week, Insurer Liberty Mutual reported that it will acquire State Auto Group, a super-regional insurance holding company headquartered in Columbus, Ohio.
In 2019, Liberty Mutual acquired three European subsidiaries of AmTrust Financial Services: Nationale Borg, Nationale Borg Reinsurance, and AmTrust Insurance Spain.
In March 2020 Liberty Mutual’s Safeco unit accepted AmTrust Financial Services’ renewal rights in six states for its Republic personal lines business.
Source: LIberty Mutual
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