Malayan Banking Bhd (Maybank) announced today that it will acquire the remaining stake of 30.85% in its insurance joint venture from Belgium-based Ageas for RM4.83 billion, paving the way for full ownership of Maybank Ageas Holdings Berhad which owns Etiqa Insurance Group.
Group President and Chief Executive Officer Datuk Seri Khairussaleh Ramli said the transaction represents the next phase of growth for Etiqa, with the banking group confident it now possesses the expertise and capabilities to independently drive the insurer’s regional expansion.
Speaking during a virtual press conference, Khairussaleh described the transaction as a “willing buyer, willing seller” arrangement, noting that Ageas had been a strategic partner since 2001 and had played an important role in building the business.
“We believe now is the right time for us to move into the next phase of growth of Maybank Ageas and Etiqa. We think that we have gained the experience and the capability to do so,” he said.
The proposed acquisition has received board approvals from both Maybank and Ageas, with regulatory approval from Bank Negara Malaysia (BNM) now being sought. Khairussaleh said the group hopes to complete the transaction before the end of the current quarter.
According to Maybank, the acquisition is expected to be earnings accretive from day one, enhancing profit after tax, earnings per share and return on equity.
Beyond the immediate financial benefits, Khairussaleh said full ownership would provide Maybank greater flexibility in capital management and dividend distribution.
Historically, Ageas maintained a relatively conservative dividend payout policy within the insurance business.
“By owning 100%, we believe that we can align the dividend payout ratio more closely with what we have at the group level,” he said.
The move is expected to strengthen Maybank’s ability to sustain its existing dividend policy while improving capital allocation across the group.
Etiqa has consistently outperformed the Malaysian insurance industry over the past decade.
Khairussaleh said Etiqa’s general insurance and general takaful businesses recorded compound annual growth of 7.3% over the past 10 years, compared with industry growth of 4.6%.
Meanwhile, its life insurance and family takaful operations expanded 9.2%, exceeding the industry’s 6.9% growth rate.
The group has also delivered similar outperformance in Singapore despite entering the market much later.
Looking ahead, Maybank aims to accelerate annual gross written premium growth to around 15%, compared with approximately 9.2% achieved over the past three years.
The bank also plans to strengthen bancassurance and bancatakaful distribution, targeting the banking channel to contribute about 50% of total gross written premiums, up from around 40% currently.
While pursuing stronger revenue growth, Khairussaleh stressed that profitability would remain equally important.
“Our focus is not just about top-line growth. We want growth that translates into stronger margins and better profitability,” he said.
Customers are also expected to benefit from deeper integration between Maybank’s banking ecosystem and Etiqa’s insurance offerings.
Khairussaleh said Maybank’s ongoing technology transformation will enable insurance, takaful and banking products to be delivered through a unified digital platform, allowing customers easier access to multiple financial solutions.
The insurer will also continue expanding its takaful product offerings, particularly in areas where conventional insurance products currently dominate.
“We still see room to introduce more takaful products while continuously developing solutions based on customer needs,” he said.
Responding to questions from BusinessToday on whether Etiqa would expand beyond Malaysia and Singapore following the acquisition, Khairussaleh said the insurer’s regional strategy would remain aligned with Maybank’s own ASEAN banking presence.
Etiqa International Holdings already owns insurance businesses in Indonesia, the Philippines and Cambodia, complementing operations in Malaysia and Singapore.
“Our strategy is to grow the insurance business together with Maybank wherever the bank has a meaningful presence,” he said.
He added that Maybank intends to leverage its retail, commercial and corporate banking franchises across these markets while expanding alternative distribution channels over time.
Addressing concerns raised by BusinessToday on whether Ageas’ exit could affect product innovation or technical expertise, Khairussaleh dismissed suggestions that the insurer would lose critical know-how.
He noted that the 25-year partnership had enabled Maybank to develop substantial in-house capabilities.
“We have partnered with Ageas since 2001 and gained tremendous experience and expertise. We believe that experience will serve us well in the next phase of growth,” he said.
He added that Maybank remains committed to attracting top industry talent to continue strengthening Etiqa’s product development, underwriting capabilities and operational excellence.
