Tokio Marine Holdings is in negotiations with RHB Bank for an acquisition of the latter’s general insurance unit, which also include a distribution deal for the Japanese insurer’s products through the bank’s branches.
The deal could reach around 3 to 3.5 times of the business’ book value, making it one of the largest non-life insurance deals in the region. An observer told Reuters that the deal is estimated to be worth up to US$500m.
Tokio Marine is Japan’s top property and casualty insurer in terms of market value. It already has an exclusive distribution agreement with RHB Bank to sell its life insurance products in the Malaysian market.
Recently, Tokio Marine has been more aggressive than its competitors in expanding overseas, as it goes up against a shrinking home market. It has spent over US$15bn in foreign acquisitions since 2008. These include US insurers HCC Insurance in 2015 for US$7.5bn, Delphi Financial in 2012 for US$2.7bn, and Philadelphia Consolidated in 2008 for US$4.7bn.
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