KUALA LUMPUR (Oct 19): MS&AD Insurance Group Holdings Inc is exploring a takeover of Malaysian insurer LPI Capital Bhd (KL:LPI) for growth overseas, Bloomberg reported.

The Japanese insurer company is working with advisers on the potential acquisition of LPI Capital, which is controlled by Malaysia’s second-largest lender Public Bank Bhd (KL:PBBANK), the financial newswire reported citing unnamed people familiar with the matter.

Considerations are ongoing and may not result in a deal, the people were reported as saying. Other bidders could also still emerge, one of the people said.

Public Bank holds about 44% of LPI Capital after acquiring more shares from the family of its late founder Tan Sri Teh Hong Piow in 2024. LPI Capital has a market capitalisation of about RM5 billion based on its latest share price.

Japanese insurers are no stranger to Malaysia. MS&AD already has a subsidiary operating in Malaysia under the brand MSIG that sells non-life insurance lines such as motor, home, and travel, as well as Islamic life insurance in a joint venture with Hong Leong Financial Group Bhd (KL:HLFG).

Tokio Marine Holdings have been in Malaysia for decades, while Sompo Holdings Inc has partnerships with CIMB Group Holdings Bhd (KL:CIMB) and Berjaya Corp Bhd (KL:BJCORP).

Representatives of MS&AD and LPI Capital declined to comment to Bloomberg, while Public Bank didn’t immediately respond to its query.