AMMB, MetLife aim to sell jointly-owned units to Great Eastern for RM1.12bil

KUALA LUMPUR: AMMB Holdings Bhd and MetLife International Holdings, LLC (MetLife) plan to dispose of their combined 100 per cent stake in AmMetLife Insurance Bhd (AML) and AmMetLife Takaful Bhd (AMT) to the Great Eastern Group for about RM1.12 billion.

In a filing with Bursa Malaysia, AMMB said wholly owned subsidiary AMAB Holdings Sdn Bhd today inked an implementation agreement with MetLife and Great Eastern Holdings Ltd’s subsidiaries Great Eastern Life Assurance (M) Bhd (GELM) and Great Eastern Takaful Bhd (GETB) for the proposed sale.

AMAB currently holds 50 per cent minus one share in AML while MetLife owns the remaining 50 per cent plus one share.

Conversely, in AMT, AMAB has 50 per cent plus one share while MetLife holds the rest of the shares.

AMMB said the proposed sale is subject to regulatory approvals from Bank Negara Malaysia and/or the Minister of Finance as well as the Monetary Authority of Singapore, among others.

After securing the necessary regulatory approvals, the involved parties will proceed with a sale and purchase agreement, it said.

On completion of the proposal, GELM will hold 100 per cent of AML and GETB will own 100 per cent 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.

Meanwhile, in a press statement, AMMB Group chief executive officer (CEO) Datuk Sulaiman Mohd Tahir said the alignment of AmMetL,ife and AmMetLife Takaful with Great Eastern, a frontrunner in the insurance landscape of Malaysia and Asia is set to pave the way for a robust growth and sustainable scalability.

"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.

In a separate statement, Great Eastern Group CEO Khor Hock Seng said the group looks forward to partnering with AmBank and AmBank Islamic to offer its comprehensive range of life insurance and takaful solutions to the bank’s three million customers.

"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.

Great Eastern is a subsidiary of OCBC Bank, the longest established Singapore bank. - Bernama