Allianz Malaysia Berhad (KLSE:ALLIANZ) has been chosen to progress in talks to acquire AmGeneral Insurance Berhad after edging out Mitsui Sumitomo Insurance Co, people with knowledge of the matter said. AmGeneral Insurance Bhd’s owners have decided to enter detailed discussions with Allianz on a potential deal, according to the people, who asked not to be identified because the information is private. They have applied for Malaysian central bank approval to allow Allianz to conduct due diligence on the business and formally proceed with negotiations on terms of a transaction, one of the people said. AmGeneral could be valued at about $800 million in a sale, the people said. Representatives for Allianz, IAG and Mitsui Sumitomo Insurance declined to comment.