PETALING JAYA: Malayan Banking Bhd (Maybank) sees room to grow its insurance and takaful business, with only 24% of its approximately 14 million customers in Malaysia and Singapore currently holding an Etiqa policy as it moves to take full ownership of the insurer.
According to presentation slides released during Maybank’s media briefing today, the country’s largest lender aims to increase bancassurance contribution to about 50% of Etiqa’s gross written premiums and contributions by 2030, from around 40% currently.
It is also targeting gross written premium growth of up to 15% annually and a mid-teens return on equity (ROE) under its ROAR30 strategy.
Maybank said acquiring the remaining 30.95% stake in Maybank Ageas Holdings Bhd (MAHB) from Belgium’s Ageas Insurance International NV will strengthen its insurance and takaful franchise through deeper customer penetration, enhanced bancassurance capabilities and a more seamless banking and insurance experience across the region.
Customers are also expected to benefit from closer integration between its banking, insurance and takaful businesses through personalised offerings, digital platforms such as MAE and Etiqa+, and an enhanced wealth proposition.
The bank said the acquisition marks the next phase of its insurance and takaful growth across Southeast Asia, supported by greater investment in innovation and digital capabilities to improve productivity, reduce operating costs and enhance customer experience.
The transaction is expected to be immediately earnings accretive. On a pro forma FY25 basis, Maybank projects the acquisition will increase group profit after tax and minority interests (PATAMI) by 1.69%, lift earnings per share by 0.81% and improve ROE to 12.08% from 11.71%, after taking financing costs into account.
Earlier today, Maybank announced plans to acquire the remaining 30.95% stake in MAHB from Belgium’s Ageas Insurance International NV for RM4.83 billion, giving the group full ownership of Etiqa’s insurance and takaful businesses in Malaysia and Singapore, subject to approval from Bank Negara Malaysia.
The acquisition will be funded through a combination of internal funds and external financing.
