AMMB Holdings will sell a 51% stake in its insurance arm AmLife Insurance for RM812 million to US insurer Metlife Inc, the Asian lender said in a statement today.
"With MetLife's global expertise, best-in-class capabilities, innovative products and services, we will materialise the full growth potential of our life insurance and takaful businesses," AMMB's group managing director Ashok Ramamurthy said in the statement.
Manulife Financial Corp and Zurich Insurance Group were among the other suitors to submit first round bids for the life insurance unit, as global and regional insurers descend on Southeast Asia for acquisition opportunities.
Asia-Pacific M&A in the insurance sector reached a record US$30.5 billion worth of deals last year, driven by activity in places such as Malaysia and Thailand.
AMMB will retain a part share in AmLife and 51% of AmFamily Takaful Berhad. The deal is subject to regulatory approval from the central bank and the Finance Ministry.
As part of the deal, MetLife will also enter an exclusive 20-year agreement to sell insurance and takaful products through AMMB's banking network across Malaysia. – Reuters, December 19, 2013.