PETALING JAYA: AMMB Holdings Bhd
and US-based MetLife International Holdings LLC have mutually agreed to terminate the proposed disposal of their jointly-owned insurance and takaful businesses to Great Eastern Holdings Ltd, a deal that was initially worth RM1.12bil.
In a filing with Bursa Malaysia, AMMB said the parties involved, namely, AMMB, MetLife and Great Eastern, collectively decided not to proceed with the sale of AmMetLife Insurance Bhd and AmMetLife Takaful Bhd to Great Eastern Life Assurance (M) Bhd and Great Eastern Takaful Bhd.
The planned sale of these business units was initially announced on Oct 2, 2023, just about a month before the departure of AMMB’s previous group chief executive officer (CEO) Datuk Sulaiman Mohd Tahir.
The proposal would have seen the four business units entering into exclusive 20-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products through AMMB’s banking network in Malaysia.
The reason for the cancellation of the planned sale was not disclosed in yesterday’s Bursa Malaysia filing.
AMMB’s shares, near their 10-year high, closed unchanged at RM5.64.
In a statement then, Sulaiman said the sale would provide AMMB with synergistic integration, economies of scale and superior customer value through combined and complementary capabilities in product design, digital innovation and distribution.
“We are genuinely excited about the potential this alliance holds. It is not just about business growth; it is about transforming the customer experience.
“We are committed to utilising this strategic collaboration as a springboard for innovation, developing tailored solutions to meet the needs of our diverse customers at different life stages in the Malaysian market,” he was quoted as saying then.
The parties involved also said earlier the proposed sale is subject to the prior written approval of Bank Negara and/or the finance minister, and the Monetary Authority of Singapore.
MetLife, part of the US New York Stock Exchange-listed MetLife Inc, established an equity partnership with AMMB back in 2014, acquiring half of the shares in AmLife Insurance and AmFamily Takaful for US$249mil.
This subsequently saw AmFamily Takaful changing its name to AmMetLife Takaful.
The insurance industry has recently come under the spotlight globally and in Malaysia.
In the United States, the sector came under scrutiny following the fatal shooting of UnitedHealthcare CEO Brian Thompson in December 2024, sparking public anger over profit-driven healthcare coverage denials.
Similarly, health insurance premiums in Malaysia recently made headlines due to spikes, leading to public outcry.
Bank Negara then intervened to stagger the planned premium hikes.
