Maybank is set to spin off and list its insurance arm Etiqa on the local stock exchange, according to people familiar with the development.

Etiqa has a presence in several countries in South-East Asia, including Malaysia, Singapore, the Philippines and Indonesia. It is estimated to be worth at least US$1 billion, two sources said in a Reuters report.

It is likely to have a bigger market value than insurance rival Syarikat Takaful Malaysia, which is valued at about US$700 million.

Etiqa owns 69% of Maybank Ageas Holdings while Ageas, the Brussels-based international insurer, holds the remainder. Maybank Ageas owns various Etiqa units.

A Maybank spokesman reportedly said the bank constantly evaluates value-creation opportunities that can benefit stakeholders but declined to comment on market talk about a spinoff.