AMMB Holdings Berhad’s 51%-owned subsidiary, AmGeneral Holdings Berhad announced the successful completion of the sale of its wholly-owned subsidiary, AmGeneral Insurance Berhad , to Liberty Insurance Berhad.
This follows through on the receipt of regulatory approval from the Minister of Finance and the signing of the share sale and purchase agreement with LIB.
With the completion of the deal, LIB has acquired 100% of the shares of AGIB, which was previously 51%-owned by AMMB and 49%-owned by Insurance Australia Group, for a headline purchase consideration amounting to RM2.29 billion. As part of the sales agreement, AMMB received cash amounting to RM287 million and a 30% stake in AGIB and LIB valued at RM939 million.
As part of the transaction, AMMB entered 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, 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.
AMMB Group Chief Executive Officer, Dato’ Sulaiman Mohd Tahir said he looks forward to working with Liberty and is ready to serve the group’s enlarged customer base as well as business partners with innovative insurance solutions.
Based in Kuala Lumpur, Liberty 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 workforce, plus franchises, car dealers, and banca partners.
