MNRB Holdings Berhad (MNRB) agrees to acquire the remaining 80% equity interest in Labuan Reinsurance (L) Ltd (Labuan Re) for a total cash consideration of approximately US$100.69 million (RM400.49 million), in a deal expected to complete by the fourth quarter of 2026. Labuan Re is currently an associate company of Malaysian Reinsurance Berhad (Malaysian Re), MNRB's wholly-owned subsidiary, which holds a 20% stake. Upon completion, Malaysian Re will retain its existing 20% interest, while MNRB will hold the remaining 80% directly, making Labuan Re a wholly-owned subsidiary of MNRB. Labuan Re is an offshore reinsurer based in the Labuan International Business and Financial Centre, underwriting general reinsurance and general retakaful business across multiple markets. Through its wholly-owned subsidiary, Labuan Re Underwriting Limited (LRUL), Labuan Re also participates in the Lloyd's market. For the financial year ended 31 December 2024, Labuan Re recorded an audited profit after tax of approximately US$26.66 million (RM121.59 million) and net assets of approximately US$197.54 million (RM884.09 million). MNRB says the purchase consideration represents approximately 0.88 times Labuan Re's adjusted tangible net asset value as at that date. The acquisition involves the purchase of 120 million ordinary shares in Labuan Re from a consortium of Malaysian financial institutions and government-linked entities. The consideration will be funded through a combination of internally generated funds and external borrowings, and is subject to customary conditions including regulatory approvals and approval from MNRB's non-interested shareholders. Dato' Sulaiman Mohd Tahir, chairman of MNRB, says: "This acquisition is a meaningful step in MNRB's growth journey and reflects our confidence in the long-term potential of Labuan Re as part of the Group. Labuan Re has built a credible presence in the international reinsurance market, and we believe that bringing it fully within MNRB will create a stronger platform for future growth." He adds: "As a Group, we remain focused on building scale responsibly, strengthening our regional relevance and ensuring that our capital is deployed in a manner that supports sustainable value creation. This transaction is aligned with that direction and reinforces our commitment to growing MNRB as a stronger and more resilient reinsurance and retakaful group." MNRB says the transaction strengthens its reinsurance focus and supports its next phase of international growth. Taking full ownership of Labuan Re positions the group to align the business more closely with its broader direction, enhance competitiveness across international markets and optimise the deployment of capital across its reinsurance and retakaful operations. MNRB offers reinsurance, retakaful and takaful solutions through its wholly-owned subsidiaries, which also include Takaful Ikhlas Family Berhad and Takaful Ikhlas General Berhad. It is listed on the Main Market of Bursa Malaysia Securities Berhad.
