RHB Bank asks for longer window to negotiate insurance merger
The proposed deal would combine Malaysian insurance businesses, with RHB Bank retaining a stake of up to 35 per cent.
RHB Bank Bhd has applied to Bank Negara Malaysia for an extension to its negotiations with Tokio Marine Asia Pte Ltd over a proposed Malaysian insurance merger. In its Bursa Malaysia filing, the bank said the application was submitted on Oct 16, without specifying the additional time sought.
The bank reported meaningful progress in the discussions. The central bank had authorised talks on May 11, allowing a six-month negotiating period that ends in November.
The transaction envisages Tokio Marine Asia buying a stake of up to 100 per cent in RHB Insurance Bhd, which would then be integrated with Tokio Marine Insurans (Malaysia) Bhd. RHB Bank would retain an interest capped at 35 per cent in the enlarged insurer.
The deal still needs regulatory clearance. This includes the Finance Minister's approval on Bank Negara's recommendation.
An earlier effort to combine the general insurance businesses ended without agreement in 2019. Negotiations opened in July that year for Tokio Marine Asia to buy RHB Bank's 94.7 per cent shareholding in RHB Insurance. They ended in December after the parties could not settle on acceptable terms.
Separately, RHB Bank entered an exclusive bancassurance arrangement lasting 20 years with Tokio Marine Life Insurance Malaysia Bhd in August 2025. It also signed a bancatakaful partnership with Syarikat Takaful Malaysia Keluarga Bhd. The agreements provide for RHB Bank to receive up to RM1.6 billion in access fees across the 20-year partnership.
