Malaysia’s AmBank eyes sale of insurance unit

December 15 2017 by InsuranceAsia News Staff

Aiming to offload some of its non-core businesses and focus on its primary bank operations, Malaysia’s AmBank is considering a sale of its general insurance business, people familiar with the matter said.

AmGeneral Insurance Bhd hopes to strike a deal with potential parties that are expected to value it at around US$400 million and US$500 million.

AmGeneral Insurance is 51% owned by AmBank, the rest of the company stake owned by Insurance Australia Group (IAG), Australia’s biggest general insurer.

As a result, IAG is also likely to divest its stake as part of the sale, the sources said.

They added that a formal bidding is likely to be done early next year.

It will join other Asian banks that have already exited from their insurance operations to free up capital and will centre its attention on core banking businesses