Metlife To Buy Interests In AMMB's Life Insurance And Family Takaful Companies

(RTTNews) - MetLife, Inc. (MET) announced Thursday that it has reached an agreement with Malaysia's AMMB Holdings Bhd to seek regulatory approval of a proposed strategic partnership involving AmLife Insurance Berhad and AmFamily Takaful Berhad.

Following receipt of regulatory approvals and satisfaction of certain other conditions, the proposed transaction will result in MetLife owning a fifty percent plus one share in AmLife with the remaining shares to be owned by AMMB, and AMMB owning a fifty percent plus one share in AmTakaful with the remaining shares to be owned by MetLife.

In addition, the proposed transaction will result in AmLife and AmTakaful entering into exclusive twenty-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) Berhad and AmIslamic Bank Berhad, in Malaysia.

The total consideration for the proposed transaction payable by MetLife is RM 812 million or $249 million upon completion, subject to customary adjustments.

MetLife said that the company and AMMB will execute definitive agreements, after which the proposed transaction will close upon the satisfaction of certain other conditions.

The proposed transaction follows recent announcements from MetLife of the formation of a joint venture with Bank for Investment and Development of Vietnam and opening of a Representative Office in Myanmar, MetLife said.

AMMB is the holding company of the fifth largest banking group in Malaysia (based on market capitalization), with RM 129 billion of assets, 187 branches, and over 4 million retail customers. AmLife is an established life insurance business that has been operating since 1973 that distributes protection, savings and investment-linked products through agency, bank, and group channels. AmTakaful started operations in January 2012 and distributes Shariah-compliant products.