Bank Negara Malaysia (BNM) has given RHB Bank Bhd approval to begin negotiations with Tokio Marine Asia Pte Ltd on a proposed insurance transaction involving its insurance arm.
In a filing, RHB Investment Bank Bhd said the approval allows both parties to commence discussions on the potential disposal of up to 100% of RHB Bank’s stake in RHB Insurance Bhd to Tokio Marine Asia.
The proposed deal also includes plans to merge RHB Insurance with Tokio Marine Insurans (Malaysia) Bhd to form a larger combined insurance entity, in which RHB Bank is expected to retain up to a 35% stake.
BNM issued its “no objection” letter dated May 11, 2026, indicating that the regulator has no objection for the parties to proceed with negotiations. However, the approval is conditional on the discussions being completed within six months from the date of the letter.
RHB stressed that this clearance only allows talks to begin and does not represent final regulatory approval of the transaction.
Under the Financial Services Act 2013, the proposed deal will still require approval from the Minister of Finance, following BNM’s recommendation, before any binding agreements can be signed.
The bank added that a further announcement will be made once definitive agreements are executed, should the transaction proceed.
The proposed move is part of ongoing consolidation activity in the insurance sector, aimed at strengthening scale and competitiveness in Malaysia’s financial services industry.
