IAG seeks to exit Malaysia

October 9 2018 by InsuranceAsia News Staff

Insurance Australia Group and Malaysian banking group AMMB Holdings are looking to sell AmGeneral, their general insurance business in Malaysia.

According to sources, the deal could value AmGeneral at around US$600 million.

The Wall Street Journal reports that the decision to sell the Malaysian insurance business is part of efforts by IAG and AMMB to review their core business strategies in their home markets.

IAG owns a 49% stake in AmGeneral, and said in February that it was reviewing its Asian operations in the face of a lack of buying opportunities to boost growth in a region that is attractive for its low penetration rates — but which is also very competitive.

Aside from Malaysia, IAG has ventures in Indonesia, Thailand and Vietnam and could complete the sale process of these businesses before the end of this year.

MORE FROM: Property & Casualty