Insurance regulator, Bank Negara Malaysia has permitted RHB Bank to begin talks on the potential sale of its insurance arm to Japanese insurance group Tokio Marine.
The two companies have been given six months to conclude the discussions. The deal if concluded, will result in RHB Bank selling its entire stake in RHB Insurance to the Japanese insurer, who will then merge it with its existing local business, Tokio Marine Insurans (Malaysia), creating Malaysia's fifth-largest general insurer by assets and the fourth-largest by net profit.
Any definitive agreement will require approval from Malaysia's finance minister. A previous sale attempt in 2019 did not materialise after the two companies failed to agree on terms.