Maybank deal will strengthen insurance synergies: S&P

The transaction is expected to close by the end of September 2026 after regulatory clearance.

Maybank’s planned acquisition of full ownership of its insurance business is expected to strengthen its wealth management strategy by increasing fee-based income and creating closer links between its banking and insurance operations, according to S&P Global Ratings.

The bank plans to buy the remaining 31% stake in Maybank Ageas Holdings Bhd. from Ageas Insurance International NV for $1.2b. 

The holding company owns the Etiqa insurance and takaful businesses in Malaysia and Singapore. 

The transaction is subject to regulatory approvals and is expected to be completed by the end of September 2026.

S&P said full ownership of Etiqa would help Malaysia’s largest banking group expand its bancassurance and wealth management businesses, increasing fee income at a time when intense competition in the domestic lending market continues to pressure banks’ net interest margins.

The ratings agency expects stronger synergies between Maybank’s banking and insurance businesses.

Around 70% of the bank’s customers do not currently hold insurance products within the group, leaving room to cross-sell banking, wealth management and insurance products.

Full ownership will also give Maybank greater flexibility to adjust incentive structures to support bancassurance sales. 

Wealth management and bancassurance fees accounted for 15% of the group’s non-interest income at the end of 2025, up from 9% at the end of 2023. 

S&P expects this share to continue rising over the next two years towards levels seen at regional peers.