GELM will acquire a 100% stake in AmMetLife Insurance and GETB will acquire 100% of the shares in AmMetLife Takaful. Credit: 3rdtimeluckystudio/Shutterstock.

Great Eastern, through its subsidiaries, has signed an implementation agreement with AMAB Holdings and MetLife International for the proposed acquisition of two insurance businesses in Malaysia.

The deal was signed by Great Eastern Life Assurance (Malaysia) (GELM) and Great Eastern Takaful Berhad (GETB).

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As per the terms of the agreement, GELM will acquire a 100% stake in AmMetLife Insurance (AML) and GETB will acquire 100% of the shares in AmMetLife Takaful (AMT).

Additionally, as part of the proposed acquisition, GELM with AML, and GETB with AMT, will enter exclusive 20-year bancassurance and bancatakaful distribution agreements.

The agreements are for the distribution of life insurance and family takaful solutions across Malaysia through the network of AMMB’s banking units, AmBank Islamic Berhad and AmBank (M) Berhad.

The proposed acquisition and the exclusive distribution partnership are valued at approximately RM1.12bn ($237.3m)

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According to AML and AMT’s audited financial filings as of 31 March 2023, their combined net asset worth was roughly RM819m.

The proposed transaction is subject to regulatory clearance from Bank Negara Malaysia and/or the Minister of Finance of the Government of Malaysia, and the Monetary Authority of Singapore.

A definitive sale and purchase agreement will be signed by AMAB, MetLife, GELM and GETB in line with the terms of the implementation agreement following receipt of these regulatory clearances and fulfilment of other requirements.

In a statement, according to Yahoo Finance, Great Eastern Group CEO Khor Hock Seng said: “We look forward to partner with AmBank (M) Berhad and AmBank Islamic Berhad to offer our insurance and takaful solutions to the bank’s three million customers.

“This opportunity will provide both GELM and GETB with an expanded distribution network to serve the Malaysian residents, and further reinforce our commitment in the insurance and family takaful industry in Malaysia.”