KUALA LUMPUR: RHB Bank Bhd has sought more time from Bank Negara Malaysia to conclude negotiations with Tokio Marine Asia Pte Ltd over the proposed merger of their Malaysian insurance businesses.
In a filing with Bursa Malaysia, RHB Bank said both parties had made "meaningful progress" in their negotiations.
The bank said it submitted an application to Bank Negara on Oct 16 for more time to finalise the proposed transaction.
It did not disclose how much additional time it had requested.
The proposed deal involves the disposal of up to 100 per cent of RHB Insurance Bhd to Tokio Marine Asia and its integration with Tokio Marine Insurans (Malaysia) Bhd.
Under the arrangement, RHB Bank would retain up to 35 per cent equity interest in the enlarged insurance entity.
On May 11, RHB Bank received Bank Negara's approval to begin negotiations with Tokio Marine Asia, with the parties given six months to conclude discussions.
The latest application comes ahead of the expiry of that period in November.
The proposed merger marks a renewed attempt by RHB Bank and Tokio Marine to combine their general insurance operations after a similar deal fell through in 2019.
The two parties began negotiations in July 2019 over the proposed disposal of RHB Bank's 94.7 per cent stake in RHB Insurance to Tokio Marine Asia.
However, the talks were called off in December that year after both parties failed to agree on mutually acceptable terms and conditions.
The latest proposal remains subject to regulatory approvals, including approval from the Finance Minister upon Bank Negara's recommendation.
RHB Bank also has an existing partnership with the Tokio Marine group.
In August 2025, it signed a 20-year exclusive bancassurance agreement with Tokio Marine Life Insurance Malaysia Bhd, alongside a bancatakaful partnership with Syarikat Takaful Malaysia Keluarga Bhd.
The agreements provide RHB Bank with access fees totalling up to RM1.6 billion under the 20-year partnership.
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