Tokio Marine Buy RHB Insurance Arm

Tokio Marine Holdings Inc is in exclusive talks to buy RHB Bank's general insurance unit in a deal that also includes an agreement to distribute the Japanese insurer's products through the Malaysian lender, people familiar with the matter told Reuters.

RHB, Malaysia's fourth-biggest lender, expects the buyer to pay between 3-3.5 times book value of the business, which could make it one of the most expensive non-life insurance deals in Southeast Asia, the people said.

One person estimated the deal value at up to $500 million.

Tokio Marine, Japan's largest property and casualty insurer by market value, has been the most aggressive among its peers in expanding its global footprint as it fights a shrinking market at home. The planned deal builds upon an exclusive distribution agreement with RHB Bank to sell life insurance products in Malaysia.