AMMB Sells Stake in AmGeneral Insurance to Liberty Insurance Berhad
KUALA LUMPUR (July 1, 2022) – AMMB Holdings Berhad’s (“AMMB”) 51%-owned subsidiary, AmGeneral Holdings Berhad (“AGHB”) has entered into a Sale & Purchase Agreement (“SPA”) with Liberty Insurance Berhad (“LIB”), for the sale of its wholly-owned subsidiary, AmGeneral Insurance Berhad (“AGIB”). This follows through from regulatory approval received from the Minister of Finance (MoF).
With regulatory approval in place, LIB will acquire 100% of AGIB’s shares. AGIB is currently 51%-owned by AMMB and 49%-owned by Insurance Australia Group (“IAG”). Upon completion of the deal, AMMB will receive its share of the sale proceeds in the form of cash and consideration shares. As a result, AMMB will hold a 30% interest in the businesses of AGIB and LIB.
As part of the transaction, AMMB will enter into a 20-year new bancassurance partnership for the distribution of general insurance products. The operations of AGIB and LIB will be formally merged at a subsequent date, which will be announced in due course.
AMMB Group Chief Executive Officer, Dato’ Sulaiman Mohd Tahir said, “AmBank Group is pleased to proceed with this strategic sale of our general insurance business. Indeed, the presence of a strong global market leader like Liberty is key to not only driving our general insurance business towards sustained growth but also for us to continue leading in this segment.”
“As a result of this sale and the subsequent merger of operations, we will be able to leverage on our complementary strengths to drive accelerated growth in the local insurance market, and together, we look to become Malaysia's largest motor insurer and leading property and casualty insurer.”
Based in Kuala Lumpur, LIB employs approximately 450 employees at six regional offices and 24 branches across Malaysia. The company distributes its personal, commercial and other product lines through multiple channels, including a 2,000-agent work force, plus franchises, car dealers and our banca partners. LIB aims to provide a convenient and hassle-free service that is easily accessible from wherever you are.
You may also view this announcement in (BM | Chinese).