PROPOSED SALE OF AMMETLIFE INSURANCE & AMMETLIFE TAKAFUL TO GREAT EASTERN
Proposed Sale Promises to Boost AmMetLife Insurance and AmMetLife Takaful’s Position in Malaysian Insurance Sector
AMAB Holdings Sdn. Bhd. (“AMAB”), a wholly owned subsidiary of AMMB Holdings Berhad (“AMMB”) entered into an Implementation Agreement with MetLife International Holdings, LLC (“MetLife”), Great Eastern Life Assurance (Malaysia) Berhad (“GELM”) and Great Eastern Takaful Berhad (“GETB”) today for the proposed sale of AmMetLife Insurance Berhad (“AML”) and AmMetLife Takaful Berhad (“AMT”) for approximately RM1,121 million.
In the current ownership structure, ownership of AML and AMT is split evenly between AMAB and MetLife. AMAB holds 50% minus one share in AML, and MetLife owns the remaining 50% plus one share. Conversely, in AMT, AMAB owns 50% plus one share, and MetLife has 50% minus one share.
Upon securing the necessary regulatory approvals, the involved parties will proceed with a sale and purchase agreement. Under this arrangement, GELM and GETB will purchase 100% of the share capital of AML and AMT. Post-acquisition, AML and AMT will be merged and integrated with GELM and GETB, respectively. The proposed sale will also see AMMB Group entering into a 20-year new bancassurance and bancatakaful partnership.
AMMB Group Chief Executive Officer, Dato’ Sulaiman Mohd Tahir said, “The alignment of AmMetLife and AmMetLife Takaful with Great Eastern, a frontrunner in the insurance landscape of Malaysia and Asia, paves the way for us to foster robust growth and sustainable scalability. This synergistic integration will provide us with the advantage of securing economies of scale that will translate into superior customer value, enhanced by our combined and complementary capabilities in product design, digital innovation and distribution expertise."
“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 added.
Founded in 1908, Great Eastern is a well-established market leader and trusted brand in Singapore and Malaysia. In Malaysia, Great Eastern Life Assurance Malaysia Berhad and Great Eastern Takaful Berhad provide a holistic suite of life insurance and family takaful coverages to more than 13 million customers, including mySalam government scheme, supported by over 30,000 strong agency force and omni-channel distribution network.