KUALA LUMPUR: Emerge Insurtech Holdings Pte Ltd has completed its acquisition of Labuan-licensed Merlion Insurance Brokers Ltd following approval from the Labuan Financial Services Authority (LFSA).

The company has been renamed Emerge Reinsurance Brokers (Labuan) Ltd, giving Emerge Group direct access to international reinsurance markets for Malaysian and Southeast Asian risks.

Emerge Re will focus on construction and engineering, data centre projects, renewable energy, transmission infrastructure, surety and bonds, as well as emerging liabilities linked to artificial intelligence (AI).

Emerge Group managing director Kevin Hoong said local insurers were struggling to provide sufficient coverage for large infrastructure projects as investment in data centres, solar farms and factories accelerated.

“When the capacity runs out, most businesses just get told to accept less cover, because nobody tells them there’s another option,” he said.

Hoong said the new licence would allow the group to bring Malaysian risks to international insurers and reinsurers with the capacity to provide coverage for larger projects.

The move comes as Malaysia expands its data centre and infrastructure sectors, increasing demand for insurance against construction risks, operational disruptions and natural disasters.

The company cited 42 data centre projects worth RM164.45bil approved in Johor by mid-2025, while noting that flooding caused RM636.9mil in economic losses nationwide in 2025.

Emerge said the acquisition would help address gaps in domestic insurance capacity by connecting businesses with international markets able to underwrite specialised risks.