New York, USA (CU)_ Liberty Mutual Insurance, a major insurer in the United States, has requested regulatory approval to purchase AmGeneral Insurance Berhad, a Malaysian insurer. AmBank Group controls 51 percent of AmGeneral, while Insurance Australia Group owns the remaining 49 percent (IAG).
Liberty Insurance Berhad hopes to buy 100% stakes of AmGeneral, and AmBank Group share sale profits will be in the form of money and consideration shares. As a result, AmBank Group would own a 30% stake in Liberty Insurance Berhad and AmGeneral businesses.
The operations of AmGeneral and Liberty Insurance Berhad will be officially combined. Based on 2020 projections, the merged business is predicted to become Malaysia’s top auto insurance and second-largest property and casualty insurance following the amalgamation. The prospective merged firm will form a unique 20-year bancassurance collaboration with AmBank Group to deliver general insurance policies as part of the acquisition.
Jim MacPhee, Liberty Mutual President, Global Retail Markets, highlighted the company’s future goals. He said, “Expanding and investing in international insurance markets is instrumental in our aspiration to become a leading global property and casualty insurance company. Liberty Mutual’s mission to help people embrace today and confidently pursue tomorrow is well aligned with AmBank’s mission to help individuals and businesses in Malaysia grow and win together”. He added, “Combining Liberty’s global capabilities with AmGeneral’s leading market share in auto and a growing business in additional product lines will create a best-in-class insurance operation.”
