Liberty Mutual wraps up $515m acquisition of Malaysian insurer AmGeneral
Liberty Mutual Insurance has wrapped up the previously announced MYR 2.29 billion ($515 million) acquisition of AmGeneral Insurance Berhad, a Malaysian insurer, having secured regulatory approval in Malaysia and signed a purchase and sale deal with AmBank Group.
The deal was announced in July 2021 and executed by Liberty Mutual Insurance’s subsidiary — Liberty Insurance Berhad. Subsequently, the operations of Liberty Insurance Berhad and AmGeneral Insurance Berhad will be merged formally.
The previous owners of AmGeneral Insurance were AmBank (51%) and Insurance Australia Group (41%).
AmBank continues to have a stake of 30% in AmGeneral Insurance via the consideration shares they were issued as part of the transaction.
AmGeneral Insurance caters to the Malaysian insurance market. It has nearly 1,400 employees working at 33 branches. The company is said to be among the top-three motor insurers in Malaysia with an increasing business in other product lines.
It distributes its personal and commercial insurance products under the Kurnia and AmAssurance brands through over 6,000 agents, car dealers, brokers, affinity partners, franchises, and its digital and direct capabilities.
Jim MacPhee — Liberty Mutual Insurance Global Retail Markets President said: “The acquisition of and subsequent merger with AmGeneral is instrumental in our aspiration to become a leading global property and casualty insurance company.
“Together, we will help people embrace today and confidently pursue tomorrow so that individuals and businesses in Malaysia grow and win together. Combining Liberty’s global capabilities with the strong team driving a well-respected and valued AmGeneral franchise will create a best-in-class insurance operation.”
As part of the deal, the merged entity will forge an exclusive bancassurance partnership for 20 years with AmBank for the distribution of general insurance products.