AmGeneral completes sale of unit to Liberty Insurance for RM2.29 bil

KUALA LUMPUR (July 28): AMMB Holdings Bhd’s (AMMB) 51%-owned subsidiary AmGeneral Holdings Bhd has completed the sale of its wholly-owned subsidiary AmGeneral Insurance Bhd (AGIB) to Liberty Insurance Bhd (LIB) for RM2.29 billion.

This follows the regulatory approval from the Minister of Finance and the signing of the share sale and purchase agreement with LIB, a statement from AmBank group said.

AMMB group Chief Executive Officer Datuk Sulaiman Mohd Tahir said: “We are pleased with the completion of the sale of our general insurance business to Liberty Mutual Insurance.

“As a strategic partner, we look forward to working with them, and we are confident that together, we are more than equipped to serve our enlarged customer base, as well as business partners with innovative insurance solutions.”

With the completion of the deal, LIB now has acquired 100% of AGIB, previously 51%-owned by AMMB and 49%-owned by Insurance Australia Group.

As part of the sales agreement, AMMB has received cash amounting to RM287 million and a 30% stake in AGIB and LIB valued at RM939 million.

In addition, AMMB has entered into a 20-year new bancassurance partnership for the distribution of general insurance products as part of the transaction.

AMMB said the operations of AGIB and LIB will be formally merged at a subsequent date, at which time it is expected that the combined entity will become a leading general insurer, as well as the largest motor insurer in Malaysia.