The announcement comes months after Tokio Marine Holdings Inc, one of Japan’s largest property and casualty insurers by market value, said it would actively pursue (https://www.reuters.com/article/us-tokio-marine-deals/tokio-marine-will-pursue-overseas-ma-says-acquisitive-insurers-new-ceo-idUSKCN1PF0XB) deals overseas to further diversify its geographic footprint.

RHB Bank said a deal is subject to Ministry of Finance and central bank approval.

Reuters reported (https://fr.reuters.com/article/idUKL3N1BB2RZ) in 2016 that Tokio Marine, which already runs its own life and general insurance businesses in Southeast Asia's third-biggest economy, could buy out RHB Insurance for as much as $500 million.

RHB Insurance had total assets of 1.78 billion ringgit ($431.52 million) and liabilities of 1.2 billion ringgit as of last year. It is the 10th largest insurer in Malaysia with a 4.4% market share, according to RHB Bank's 2018 annual report.

It said the insurance business's gross written premium - amount customers are required to pay for insurance coverage - rose 14% to 787 million ringgit ($190.79 million) last year, compared with the industry's growth rate of 1.5%.

(Reporting by Krishna N. Das, editing by Louise Heavens)