(Re)in Summary
- MS&AD is reportedly exploring a takeover of Malaysia’s LPI Capital, which has a market value of approximately US$1.2bn.
- LPI Capital, controlled by Public Bank, owns general insurer Lonpac Insurance, which operates in Malaysia, Singapore and Cambodia.
- The potential deal would extend MS&AD’s overseas expansion following investments in W. R. Berkley and Barings earlier this year.
Japan’s MS&AD Insurance Group Holdings is exploring a potential takeover of Malaysian insurer LPI Capital, Bloomberg reported on Friday, citing people familiar with the matter.
The Japanese insurance group is working with advisers on the possible acquisition as it seeks to expand its overseas operations, according to the report.
Public Bank, Malaysia’s second-largest lender, controls LPI Capital after acquiring a 44.15% stake in the insurer in December 2024. A sale at the current share price could unlock a gain of RM521m (US$127.62m), according to The Edge, citing CIMB Securities.
LPI Capital owns general insurer Lonpac Insurance, which operates in Malaysia, Singapore and Cambodia. The group recorded gross written premiums of RM2.01bn in 2025, up 7.8% year-on-year. Combining Lonpac with MS&AD’s existing MSIG Malaysia business would give the group about 16% of Malaysia’s general insurance market.
Shares of LPI Capital have declined about 15% this year, giving the company a market capitalisation of approximately US$1.2bn, according to Bloomberg. Meanwhile, MS&AD’s shares have risen 40% in Tokyo over the same period, bringing its market valuation to around US$49bn.
The potential acquisition would follow Mitsui Sumitomo’s investment in US specialty insurer W. R. Berkley, completed in March, and MS&AD’s US$1.44bn acquisition of an 18% stake in asset manager Barings in May.
Other Japanese insurers are also pursuing acquisitions across the region. In Malaysia, RHB Bank is seeking more time to finalise the proposed sale of its insurance arm to Tokio Marine, with transaction terms and documents still being negotiated. Sumitomo Life is meanwhile considering an acquisition of Singapore-based Income Insurance as it pursues Southeast Asian expansion through Singlife.
In Australia, Dai-ichi Life has bid for full ownership of Challenger in a proposal valuing the retirement income business at approximately A$7.94bn (US$5.53bn), following its proposed acquisition of New Zealand’s Fidelity Life.
(Re)in Asia reached out to MS&AD regarding the reported potential acquisition, but the Japanese insurer declined to comment.
