Liberty Mutual eyes Malaysia's AmGeneral to become leading insurer

Liberty Mutual Insurance is seeking to acquire Malaysian insurer  AmGeneral Insurance Berhad in its bid to become the largest auto insurer and second-largest property/casualty insurer in the country.

The company is applying for regulatory approval to acquire 100 percent shares of AmGeneral, which is currently 51 percent-owned by AmBank Group and 49 percent-owned by Insurance Australia Group (IAG).

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 percent interest in the Liberty Insurance Berhad and AmGeneral businesses.

The AmGeneral and Liberty Insurance Berhad operations will, at a subsequent date, be formally merged. Following the merger, it is expected that the combined entity will become the largest auto insurer and second-largest property and casualty insurer in Malaysia based off of 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.

AmGeneral serves the Malaysian insurance market through its 33 branch locations, and distributes its personal and commercial insurance products under the AmAssurance and Kurnia brands.

Liberty Mutual president of global retail markets, Jim MacPhee (pictured) said: "Expanding and investing in international insurance markets is instrumental in our aspiration to become a leading global property and casualty insurance company.

" 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 auto and a growing business in additional product lines will create a best-in-class insurance operation."

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