AmMetLife Insurance Bhd (AML) and AmMetLife Takaful Bhd (AMT) will be sold by AMMB Holdings Bhd and MetLife International Holdings, LLC (MetLife) to the Great Eastern Group for about RM1.12 billion.
In a filing with Bursa Malaysia, AMMB stated that its wholly owned subsidiary AMAB Holdings Sdn Bhd has signed an implementation agreement for the proposed sale with MetLife and the subsidiaries of Great Eastern Holdings Ltd, Great Eastern Takaful Bhd (GETB) and Great Eastern Life Assurance (M) Bhd (GELM).
MetLife currently owns the remaining 50 percent plus one share of AML, whereas AMAB currently controls 50 percent minus one share.
In contrast, AMAB has 50 percent plus one shares of AMT while MetLife owns the remaining shares.
The planned sale, according to AMMB, is pending regulatory permission from the Monetary Authority of Singapore, among others, as well as Bank Negara Malaysia and/or the Minister of Finance.
It stated that the parties concerned will move forward with a sale and purchase agreement after obtaining the required regulatory permissions.
GELM will own 100 percent of AML upon conclusion of the proposal, and GETB will control 100 percent of AMT.
“In addition, the proposal will see GELM, AML, GETB and AMT entering into exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products through the distribution network of AMMB’s banking subsidiaries, AmBank (M) Bhd and AmBank Islamic Bhd, across Malaysia,” AMMB said.
The alignment of AmMetLife and AmMetLife Takaful with Great Eastern, a leader in the insurance industry in Malaysia and Asia, is expected to open the door for robust growth and sustainable scalability, according to AMMB Group CEO Datuk Sulaiman Mohd Tahir in a press release.
“We are genuinely excited about the potential this alliance holds. It is not just about business growth; it is about transforming the customer experience,” he added.
Great Eastern Group CEO Khor Hock Seng stated in a separate statement that the company is looking forward to working with AmBank and AmBank Islamic to provide the three million customers of the bank with its full range of life insurance and takaful options.
“This opportunity will provide both GELM and GETB with an expanded distribution network to serve Malaysians better, and further reinforce our commitment to increase the penetration rate of life insurance and family takaful industry in Malaysia,” he said.
The oldest bank in Singapore, OCBC Bank, is the parent company of Great Eastern.