AU$855m (US$555m) deal includes a 25-year distribution agreement, with an option for IAG to purchase the remaining 10% underwriting business in two years.
Inconsistency with previous commitments was behind rejection of a proposed SG$1.85bn (US$1.38bn) capital reduction says MAS Chairman and Deputy PM Gan Kim Yong.
Malaysia's largest bank reportedly evaluating options enhance the value of the insurer, including a buyout of Ageas's 31% stake and changes to bancassurance.