Liberty Mutual Insurance completes major acquisition | Insurance Business America
Liberty Mutual Insurance announced that it has completed its acquisition of AmGeneral Insurance Berhad – an insurance company based in Malaysia.
The transaction closed following the receipt of regulatory approval in Malaysia, and after Liberty Mutual signed a purchase and sale agreement with AmBank Group.
AmGeneral is comprised of 1,400 employees across 33 branch locations. It is one of the country’s top three motor insurers, and it distributes its personal and commercial insurance products under the AmAssurance and Kurnia brands through over 6,000 agents, brokers, car dealers, franchises and affinity partners.
Previously, AmBank owned 51% of AmGeneral, with the other 49% owned by Insurance Australia Group. Liberty Insurance Berhad acquired 100% of the shares of AmGeneral, while AmBank continues to hold a 30% interest in the business via the consideration shares the bank received as part of the deal.
A release said that as part of the deal, the prospective merged entity between Liberty Insurance Berhad and AmGeneral Insurance Berhad will enter into an exclusive 20-year bancassurance partnership with AmBank to distribute general insurance products. The merger will formally occur at a later date, Liberty Mutual reported, and the resulting entity will become “the largest auto insurer and a leading general insurer in Malaysia.”
“The acquisition of and subsequent merger with AmGeneral is instrumental in our aspiration to become a leading global property and casualty insurance company," said Liberty Mutual president, global retail markets Jim MacPhee. "Together, we will help people embrace today and confidently pursue tomorrow so that individuals and businesses in Malaysia grow and win together.”
MacPhee added that combing Liberty’s global capabilities with AmGeneral’s strong team “will create a best-in-class insurance operation."