AMMB, Metlife tie up in insurance and takaful

KUALA LUMPUR: AMMB Holdings Bhd has signed an agreement with MetLife Inc's unit MetLife International Holdings Inc to seek regulatory approval of a proposed strategic partnership involving AmLife Insurance Bhd and AmFamily Takaful Bhd.

Upon receipt of regulatory approvals and satisfaction of certain other conditions, the proposal will result in MetLife owning 50 per cent plus one share in AmLife with the remaining shares to be owned by AMMB, and AMMB owning 50 per cent plus one share in AmTakaful with the remaining shares to be owned by MetLife, the company said in a statement.

It said the proposal will see AmLife and AmTakaful 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 AmIslamic Bank Bhd, across Malaysia. 

The total consideration for the proposal payable by MetLife is RM812 million upon completion, subject to customary adjustment. 

"The proposal is subject to the prior written approval of Bank Negara Malaysia and/or the Minister of Finance. Upon the receipt of the aforesaid regulatory approvals, AMMB and MetLife will execute definitive agreements, after which the proposal will close upon the satisfaction of certain other conditions," it said.