Maybank Buys Full Control of Etiqa of Malaysia in $1.18 Billion Deal

News Desk: Maybank is set to take full ownership of its insurance business, Etiqa, after agreeing to acquire the remaining 30.95% stake in Maybank Ageas Holdings from Belgian insurer Ageas for RM4.8 billion (US$1.18 billion). The transaction marks a significant strategic move for Malaysia’s largest bank as it seeks to strengthen its position in the insurance and takaful sectors across Southeast Asia.

According to Reuters, the acquisition is expected to be completed by the end of the current quarter, subject to approval from Bank Negara Malaysia.

Maybank currently owns 69.05% of Maybank Ageas Holdings, the parent company of Etiqa’s operations in Malaysia and Singapore. Once the deal is finalized, the bank will have complete control over the insurer, allowing it to integrate insurance products more closely with its banking network and expand its regional presence.

Etiqa offers life and general insurance alongside takaful, or Islamic insurance, making it a key component of Maybank’s financial services portfolio.

Speaking during a media briefing, Maybank President and Group Chief Executive Officer Khairussaleh Ramli said the timing was right for the company to enter its next phase of growth. He noted that Etiqa has consistently outperformed the broader insurance market over the past decade, with its insurance and takaful businesses recording annual growth of 7.3%, compared with the industry average of 4.6%.

Its life insurance and family takaful segment expanded at an annual rate of 9.2%, also exceeding overall market growth, according to Reuters.

The acquisition will be financed through a combination of internal and external funding. The agreed purchase price reflects an adjustment for a proposed RM800 million dividend to be distributed by Maybank Ageas Holdings upon completion of the transaction.

Under the arrangement, Ageas will receive RM248 million from the dividend, while Maybank will receive RM552 million. Reuters reported that the deal is expected to improve Maybank’s earnings per share, return on equity and overall capital efficiency while supporting its existing dividend policy.

Maybank aims to accelerate Etiqa’s expansion by targeting a 15% compound annual growth rate in insurance premiums and increasing the share of premiums generated through bancassurance to 50% by 2030, up from around 40% today.

Full ownership is expected to give the bank greater flexibility in driving long-term growth and strengthening its competitive position in Malaysia, Singapore and other Southeast Asian markets, reinforcing its ambition to become a leading regional provider of integrated banking and insurance services.