Malayan Banking Bhd (Maybank), the largest bank in Malaysia, is preparing to spin off its Etiqa insurance unit and list it on the domestic bourse, sources suggest.

Etiqa, which has a presence in Malaysia, Indonesia, the Philippines, and Singapore, has been estimated to be worth over US$1 billion, the two sources told Reuters. It is expected to exceed the value of local competitor Syarikat Takaful Malaysia Bhd, which was valued at about US$700 million.

Etiqa International Holdings Sdn Bhd holds 69% of Maybank Ageas Holdings Bhd, while Belgian insurer Ageas has the remainder. Maybank Ageas owns various Etiqa units across the Southeast Asian region.

According to the sources, who declined to be identified, Maybank’s investors will receive shares in the spun-off Etiqa proportional to their holdings in the bank. They added that no new funds are expected to be raised in the listing.

Several investment banks have already been appointed to oversee the transaction, the sources said. The listing is expected to take place later this year.

“The listing will help Maybank unlock value and get it higher valuations,” one of the sources was quoted as saying by Reuters.