AMMB gets MoF nod to sell unit to Liberty Insurance


Wednesday, 29 June 2022

PETALING JAYA: AMMB Holdings Bhd subsidiary AmGeneral Holdings Bhd has obtained approval from the Minister of Finance (Mor) for the sale of its wholly owned subsidiary AmGeneral Insurance Bhd (AGIB) to Liberty Insurance Bhd (LIB). AmGeneral Insurance is currently 51%owned by AMMB and 49%-owned by Insurance Australia Group. Upon completion of the deal. Liberty Insurance will acquire 100% of AmGeneral Insurance's shares, while AMMB will receive a share of the sale proceeds and 30% consideration shares. The signing of the sale and purchase agreement and other transaction agreements will be in July 2022. As part of the transaction, AMMB will enter into a 20-year new bancassurance partnership with the prospective merged entity for the distribution of general insurance products. The operations of AmGeneral Insurance and Liberty Insurance will be formally merged at a subsequent date. AMMB Group CEO Datuk Sulaiman Mohd Tahir said the partnership with Liberty Mutual is key to propelling its general insurance business to greater heights. "We are optimistic on the sustained growth opportunities that this dynamic union will bring about," he added. Liberty Insurance has 450 employees across six regional offices and 24 branches in Malaysia. It distributes personal, commercial, and other product lines through multiple channels including a 2,000-agent workforce as well as franchises, car dealers and banca partners. "This is a transformational moment for Liberty in Malaysia. This approval solidifies our path toward deal completion and integration with AmGeneral, and realising the possibilities of what we can accomplish together," said Liberty Mutual global retail markets east president & CO0 Defne Turkes.