Proposed Acquisition of AmMetLife Insurance and AmMetLife Takaful by Great Eastern
Singapore, 2 October 2023 – Great Eastern Holdings Limited (“GEH”) wishes to announce that its subsidiaries, Great Eastern Life Assurance (Malaysia) Berhad (“GELM”) and Great Eastern Takaful Berhad (“GETB”), today entered into an implementation agreement (“Implementation Agreement”) with AMAB Holdings Sdn Bhd (“AMAB”) (a wholly-owned subsidiary of AMMB Holdings Berhad (“AMMB”)) and MetLife International Holdings, LLC (“MetLife”), in relation to:
a. The proposed acquisition by GELM of 100% of the shares in AmMetLife Insurance Berhad (“AML”); and
b. The proposed acquisition by GETB of 100% of the shares in AmMetLife Takaful Berhad (“AMT”),
from AMAB and MetLife (the “Proposed Acquisition”).
Upon completion of the Proposed Acquisition, GELM will hold 100% of the shares in AML and GETB will hold 100% of the shares in AMT. In addition, the Proposed Acquisition will see GELM, together with AML, and GETB, together with AMT, 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 AmBank Islamic Berhad, across Malaysia.
The Proposed Acquisition is subject to regulatory approvals from Bank Negara Malaysia and/or the Minister of Finance of the Government of Malaysia, and the Monetary Authority of Singapore. Upon receipt of these regulatory approvals and satisfaction of certain other conditions, AMAB, MetLife, GELM and GETB will enter into a definitive sale and purchase agreement in accordance with the terms of the Implementation Agreement.
Great Eastern Group’s Chief Executive Officer, Mr Khor Hock Seng expressed his enthusiasm, stating, “We look forward to partner with AmBank (M) Berhad and AmBank Islamic Berhad to offer our insurance and takaful solutions to the bank’s 3 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.”
Further announcements in relation to this acquisition will be made at the appropriate time.
About Great Eastern
Founded in 1908, Great Eastern is a well-established market leader and trusted brand in Singapore and Malaysia. With over S$100 billion in assets and more than 15 million policyholders, including 12 million from government schemes, it provides insurance solutions to customers through three successful distribution channels – a tied agency force, bancassurance, and financial advisory firm Great Eastern Financial Advisers. The Group also operates in Indonesia and Brunei.
The Great Eastern Life Assurance Company Limited and Great Eastern General Insurance Limited have been assigned the financial strength and counterparty credit ratings of "AA-" by S&P Global Ratings since 2010, one of the highest among Asian life insurance companies. Great Eastern's asset management subsidiary, Lion Global Investors Limited, is one of the leading asset management companies in Southeast Asia.
Great Eastern is a subsidiary of OCBC Bank, the longest established Singapore bank, formed in 1932. It is the second largest financial services group in Southeast Asia by assets and one of the world’s most highly-rated banks, with an Aa1 rating from Moody’s and AA- by both Fitch and S&P. Recognised for its financial strength and stability, OCBC Bank is consistently ranked among the World’s Top 50 Safest Banks by Global Finance and has been named Best Managed Bank in Singapore by The Asian Banker.