Kuala Lumpur-based Liberty Insurance Berhad, a company within the Liberty Mutual Insurance Group, has entered into a Share Sale & Purchase Agreement to acquire AmGeneral Insurance Berhad. AmGeneral is currently 51%-owned by AmBank Group and 49%-owned by Insurance Australia Group. Upon deal completion, which is subject to customary closing conditions, LIB will acquire 100% shares of AmGeneral, and AmBank’s share of the sale proceeds will be in the form of cash and consideration shares, which will result in AmBank holding a 30% interest in the LIB and AmGeneral businesses.
AmGeneral serves the Malaysian insurance market through approximately 1,400 employees at 33 branch locations. It is a top three motor insurer in the country 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.
As part of the transaction, the prospective merged entity will enter into an exclusive 20-year bancassurance partnership with AmBank to distribute general insurance products. The AmGeneral and LIB operations will, at a subsequent date and subject to regulatory approval, be formally merged.
