MNRB Holdings Berhad has signed a conditional share purchase agreement to acquire the remaining 80% equity interest in Labuan Reinsurance for about $100.69 million, or RM400.49 million in cash, in a move set to deepen the Malaysian group's footprint in the international reinsurance market.
Labuan Re is currently an associate of Malaysian Reinsurance Berhad, MNRB's wholly owned subsidiary, which holds a 20% stake. Once the deal closes, Malaysian Re will retain its existing interest while MNRB takes the remaining 80% directly, making Labuan Re a wholly owned subsidiary of the group.
MNRB said the transaction builds on its existing ties with Labuan Re and represents a step in expanding the international reinsurance footprint of the MNRB Group.
Labuan Re operates from the Labuan International Business and Financial Centre, underwriting general reinsurance and general retakaful business across several markets. Through its wholly owned subsidiary Labuan Re Underwriting Limited (LRUL), it also participates in the Lloyd's market.
The reinsurer draws income from three sources: underwriting reinsurance and retakaful business, its Lloyd's participation through LRUL, and investment income.
The transaction lands as Labuan IBFC continues to scale as a regional reinsurance and captive hub. Gross premiums in the jurisdiction rose 24.2% to $3.5 billion in 2024, the highest level in five years, with captive premiums climbing 31.3% to $943 million.
Labuan now hosts more than 70 captives, while total registered companies in the center rose 5.5% to 7,032 in 2024 and operating revenue from insurance and insurance-related activities increased 19.7% to $4.3 billion.
For the financial year ended December 31, 2024, Labuan Re reported profit after tax of about $26.66 million, or RM121.59 million, with net assets of approximately $197.54 million, or RM884.09 million.
MNRB said full ownership would allow it to align Labuan Re more closely with the group's wider strategy, sharpen its competitiveness internationally, and optimize capital deployment across its reinsurance and retakaful operations.
The company described the valuation as disciplined, noting the purchase consideration represents about 0.88 times Labuan Re's adjusted tangible net asset value as of December 31, 2024.
"This acquisition is a meaningful step in MNRB's growth journey and reflects our confidence in the long-term potential of Labuan Re as part of the Group," said Dato' Sulaiman Mohd Tahir, chairman of MNRB. He added that Labuan Re has built a credible presence in international reinsurance and that bringing it fully under MNRB would create a stronger platform for future growth.
Sulaiman said the group remains focused on building scale responsibly, strengthening regional relevance and deploying capital in a way that supports sustainable value creation.
The transaction covers 120 million ordinary shares held by a consortium of Malaysian financial institutions and government-linked entities, funded through internal funds and external borrowings.
Completion is subject to regulatory approvals and the consent of MNRB's non-interested shareholders, with closing expected by the fourth quarter of 2026.
