Kuala Lumpur, 19 May 2026 - MNRB Holdings Berhad ("MNRB" or the "Company") today announced that it has entered into a conditional share purchase agreement to acquire the remaining 80% equity interest in Labuan Reinsurance (L) Ltd ("Labuan Re") for a total cash consideration of approximately USD100.69 million (equivalent to RM400.49 million (the "Proposed Acquisition").
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 in Labuan Re, while MNRB will hold the remaining 80% directly, making Labuan Re a wholly-owned subsidiary of MNRB.
The Proposed Acquisition builds on MNRB's existing relationship with Labuan Re and marks a significant step in strengthening the international reinsurance presence of MNRB and its subsidiaries ("MNRB Group" or the "Group").
Strengthening an Established and Internationally Connected Platform
Labuan Re is an offshore reinsurer based in the Labuan International Business and Financial Centre and underwrites 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, providing access to broader and more specialised underwriting opportunities and international risk pools. Labuan Re's business is supported by three primary income streams: underwriting reinsurance and retakaful business, participation in Lloyd's through LRUL, and investment income.
For the latest audited financial year ended 31 December 2024, Labuan Re recorded a profit after tax of approximately USD26.66 million or RM121.59 million and net assets of approximately USD197.54 million or RM884.09 million, reflecting a stable earnings profile and sizeable asset base.
Strategic Rationale for the Proposed Acquisition
The Proposed Acquisition is expected to strengthen MNRB's reinsurance focus and support its next phase of international growth. By taking full ownership of Labuan Re, MNRB will be better positioned to align the business more closely with the Group's broader direction and growth trajectory, enhance its competitiveness across international markets, and optimise the deployment of capital across its reinsurance and retakaful operations.
The transaction is also being undertaken at what MNRB considers to be an attractive and disciplined valuation, with the purchase consideration representing approximately 0.88 times Labuan Re's adjusted tangible net asset value as at 31 December 2024.
Leadership Commentary
Commenting on the Proposed Acquisition, Dato' Sulaiman Mohd Tahir, Chairman of MNRB, said:
"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.
"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."
Transaction Details
The Proposed Acquisition involves the purchase of 120 million ordinary shares in Labuan Re, representing the remaining 80% equity interest, from a consortium of Malaysian financial institutions and government-linked entities.
The purchase consideration will be satisfied in cash and funded through a combination of internally generated funds and external borrowings. The transaction is subject to customary conditions, including approvals from the relevant regulatory authorities and MNRB's non-interested shareholders, and is expected to be completed by the fourth quarter of 2026.