Liberty Mutual Insurance has concluded its previously announced acquisition of Malaysian insurer AmGeneral Insurance (AmGeneral).
The deal, which was first announced in July last year, was closed after the receipt of regulatory approval in Malaysia and the signing of a purchase and sale agreement with AmBank Group (AmBank).
AmBank previously held 51% of AmGeneral while the remainder was owned by Insurance Australia Group.
Under the agreement, Liberty Insurance acquired 100% of the shares of AmGeneral.
AmBank will continue to have a 30% interest in AmGeneral through the consideration shares it has received as part of the transaction.
The companies said that the AmGeneral and Liberty Insurance operations will be combined on a subsequent date.
The prospective merged entity, which is deemed to become the largest auto insurer in Malaysia, will sign an exclusive 20-year bancassurance partnership with AmBank to distribute general insurance products.
Liberty Mutual Global Retail Markets president Jim MacPhee said: “The acquisition of and subsequent merger with AmGeneral is instrumental in our aspiration to become a leading global property and casualty insurance company.”
AmGeneral distributes its personal and commercial insurance products under the AmAssurance and Kurnia brands. It has approximately 1,400 employees at its 33 branch locations spread across Malaysia.
MacPhee added. “Combining Liberty’s global capabilities with the strong team driving a well-respected and valued AmGeneral franchise will create a best-in-class insurance operation.”
This March, Liberty Mutual finalised its $1bn acquisition of State Auto Group, a US-based property and casualty insurance holding firm.