Malayan Banking Bhd, also known as Maybank, could be planning to have its insurance arm listed on the stock market, sources say.
If the listing pushes through, it will join an IPO wave on the Bursa Malaysia, the country’s stock market. A significant number of firms have gone public this year due to favourable market conditions.
Maybank Investment Bank Bhd, the group’s investment banking division, and Credit Suisse are working on the listing, reports
The Star.
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Maybank Ageas Holdings Bhd, of which the Maybank Group owns 69.05%, wholly owns six insurance companies, including Etiqa Insurance Bhd, Etiqa Takaful Bhd and Etiqa Insurance Pte Ltd. These companies offer life and general insurance in Malaysia, Singapore, and the Philippines.
While insurance makes up only a small part of the Maybank Group’s operations, Etiqa is the largest Malaysian insurance company. However, its influence is mostly confined to Malaysia.
Sources say that Etiqa is planning to expand throughout the ASEAN region using its mother company’s extensive network of bank branches. Its Singaporean unit has experienced strong growth over the past three years. Even in its home market Malaysia, there are still significant opportunities for expansion given the low insurance penetration in the country.
In 2016, Maybank Ageas made record-high pre-tax earnings of MYR810.3 million (US$183.7 million) more than one-third higher than the MYR604.4 million (US$137 million) achieved in the previous year.
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