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Malaysia's AmBank to Buy MAA's Nonlife Unit



 

 

 

 

MAA Holdings Bhd said it has signed a memorandum of understanding with AmG Insurance, a nonlife insurance subsidiary of AmBank Group for the sale of Malaysian Assurance Alliance's nonlife insurance business in Malaysia.
 

 

Malaysian financial group AmBank agreed to purchase MAA Holdings' nonlife business for 274.8 million ringgit (60.2 million euros), representing a price-to-book value of 2.6 times, according to MAA Holdings' statement posted on Bursa Malaysia, the stock exchange of Malaysia.

 

The acquisition is to be undertaken between AmBank Group's nonlife insurance unit AmG Insurance and MAA Holdings' insurance subsidiary Malaysian Assurance Alliance. The combined nonlife insurance business of AmBank Group and MAA Holdings will form the largest nonlife insurer in Malaysia with estimated gross written premiums of 1 billion ringgit.

 

Under the proposal, AmBank Group will also acquire a 4.9% stake in MAA Holdings' takaful unit for 16.2 million ringgit, extending the financial group's presence in the Islamic insurance market. The acquisition proposal is subject to approval from local regulators.

 

AmBank Group said it is also looking for a new strategic partner for its life insurance business. The financial group holds AmG Insurance and AmAssurance, respectively, for nonlife and life insurance business.

 

AmG Insurance is 70% owned by AmBank Group and the remaining stake is held by Australia's Insurance Australia Group. IAG is currently in discussions with AmBank Group to increase its stake in AmG Insurance, possibly to 49%, the maximum level allowed for foreign investors in Malaysia.

 

MAA Holdings owns companies that operate business in nonlife and life insurance; reinsurance; hire purchase, leasing and credit facilities; unit trust; property management; fund management and investment advisory; security and consultancy services. The publicly-listed financial services group also owns operations in Indonesia, Philippines and Thailand.

 

 

 

 


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