IAG Plans to Sell 49% Stake in Malaysian Insurer AmGeneral

By David Winning

SYDNEY--Insurance Australia Group Ltd. said it plans to sell its 49% stake in Malaysian general insurer AmGeneral Holdings Bhd.

IAG said the transaction will generate sale proceeds of 340 million Australian dollars (US$251.6 million), but it will incur an accounting loss of around A$90 million that will be recognized in its results for the 12 months through June.

IAG said Liberty Insurance Bhd. will acquire its interest and the 51% stake held by AMMB Holdings Bhd. Once the deal completes, AMMB will hold a 30% interest in the insurance operations of Liberty and AmGeneral.

"The sale is expected to result in an increase in IAG's regulatory capital position of approximately A$150 million at completion," the Australian company said in a regulatory filing.

Write to David Winning at [e-mail]

(END) Dow Jones Newswires

07-19-21 0607ET