KUALA LUMPUR: AMMB Holdings Bhd is selling all its interests in insurance arms AmMetLife Insurance Bhd (AML) and AmMetLife Takaful Bhd (AMT) for RM1.12 billion.
AMMB said subsidiary AMAB Holdings Sdn Bhd had entered into an implementation agreement with MetLife International Holdings, LLC (MetLife), Great Eastern Life Assurance (Malaysia) Bhd (GELM) and Great Eastern Takaful Bd (GETB) for the proposed sale.
In the current ownership structure, ownership of AML and AMT is split evenly between AMAB and MetLife.
AMAB holds 50 per cent minus one share in AML, and MetLife owns the remaining 50 per cent plus one share. Conversely in AMT, AMAB owns 50 per cent plus one share, and MetLife has 50 per cent minus one share.
Upon securing the necessary regulatory approvals, the parties will proceed with a sale and purchase agreement.
Under the arrangement, GELM and GETB will buy 100 per cent 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 entering into a 20-year new bancassurance and bancatakaful partnership.
AMMB group chief executive oficer Datuk 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 the company to foster robust growth and sustainable scalability.
Sulaiman said the synergistic integration will provide AMMB with the advantage of securing economies of scale that will translate into superior customer value.
"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.