PETALING JAYA: AMMB Holdings Bhd’s 51% owned subsidiary AmGeneral Holdings Bhd (AGHB) has entered into an agreement with Liberty Insurance Bhd (LIB) for its proposed sale of AmGeneral Insurance Bhd (AGIB).

       The deal is subject to receiving appropriate regulatory approvals that would subsequently see LIB acquiring a 100% equity stake in AGIB from AGHB for RM2.29bil, which will be satisfied through a combination of cash and shares.

       This will then result in AMMB eventually holding a 30% equity interest in the LIB and AGIB businesses, the bank said in a statement yesterday.

       “AMMB Group is pleased to join forces with a global leader in insurance like Liberty Mutual Insurance Co.

       “We are confident that this proposed transaction will set the stage for us to thrive and compete better, strengthening our positioning in the Malaysian insurance market,” AMMB group chief executive officer Datuk Sulaiman Mohd Tahir said.

       “The group looks forward to working with Liberty Mutual and leveraging our complementary strengths to win in the Malaysian insurance market together,” AMMB Group chairman Tan Sri Azman Hashim (pic) said.

       “The combined entity is expected to become the largest motor insurer and the number two property and casualty insurer in the market with an estimated proforma premium base of RM2.3bil in 2022, based on 2020 data.

       “The synergies that we will be able to leverage on will benefit our shareholders, customers, employees and all other stakeholders,” Sulaiman added.

       The LIB and AGIB operations will be formally merged at a later date, it said.

       Upon completion of the proposed sale, AMMB and Liberty Mutual, which is the parent company of LIB, will hold 30% and 70% equity stake respectively in LIB and AGIB, the statement said.

       This will also see AMMB Group entering into a 20-year new bancassurance partnership, it added.

       “As an enlarged entity, we will also have the resources to speed up product development and accelerate the adoption of digital innovation,” Sulaiman said.

       AMMB Group chairman Tan Sri Azman Hashim said: “This is indeed a new chapter for us to look forward to. We have been working very closely with many insurance leaders over the past decade to grow the insurance business and will continue to do so.

       “The group looks forward to working with Liberty Mutual and leveraging our complementary strengths to win in the Malaysian insurance market together."