Maybank expands insurance business with $1.2 billion Etiqa deal

Maybank is taking full ownership of its insurance business after agreeing to buy the remaining stake in Maybank Ageas Holdings from Belgium’s Ageas for 4.8 billion ringgit ($1.18 billion). 

The acquisition gives Malaysia’s largest lender complete control of Etiqa, one of the country’s leading insurance and takaful providers, as the bank looks to expand insurance sales through its banking network across Southeast Asia. 

The deal reflects a broader push by banks to grow fee-based income by offering more insurance and wealth management products alongside traditional banking services.

Maybank said the transaction will strengthen its long-term position in markets where demand for insurance continues to rise. 

The lender expects the acquisition to be completed by the end of the current quarter, subject to approval from Bank Negara Malaysia, the country’s central bank.

Maybank takes full control of Etiqa 

Maybank currently owns 69.05% of Maybank Ageas Holdings and will acquire the remaining 30.95% stake from Ageas.

The company owns Etiqa’s life insurance, general insurance and takaful businesses in Malaysia and Singapore. 

“We believe now is the right time for us to move into the next phase of growth” for Maybank Ageas Holdings and Etiqa, President and Group Chief Executive Officer Khairussaleh Ramli said during a media briefing on Monday.

He said full ownership will allow the bank to better support the business and create more opportunities across its regional operations.

Deal expected to lift earnings 

The purchase price of 4.83 billion ringgit includes an adjustment for an 800 million ringgit dividend proposed by Maybank Ageas Holdings before the transaction is completed.

Ageas will receive 248 million ringgit from the dividend, while Maybank will receive 552 million ringgit. 

Maybank said the acquisition will be funded through a mix of internal resources and external financing.

It expects the deal to immediately improve earnings per share, profit attributable to shareholders and return on equity while providing greater flexibility in managing capital and supporting its dividend policy.

Growth plans backed by strong performance 

Etiqa’s insurance and takaful businesses in Malaysia have grown at an average annual rate of 7.3% over the past decade, ahead of the industry’s 4.6% growth.

Its life insurance and family takaful business recorded annual growth of 9.2%, compared with 6.9% for the wider market. 

Etiqa, the insurance arm of Maybank, provides life insurance, general insurance, family takaful and general takaful products across Malaysia and Singapore.

The company distributes its products through bank branches, digital channels, agents and corporate partnerships, making it one of Southeast Asia’s largest bancassurance and takaful providers. 

Looking ahead, Maybank aims to increase Etiqa’s premium growth to a 15% compound annual rate and raise bancassurance’s contribution to total premiums to 50% by 2030, from about 40% today, as it expands insurance offerings through its regional banking network.