U.S. insurer MetLife and Kuala Lumpur-listed AMMB Holdings are working with an adviser for the potential divestment of their jointly-owned business.
The sale of Malaysian life insurance business AmMetLife could fetch up to $600 million, and could attract interest from other insurers in Malaysia. Deliberations are still preliminary, and a formal sales process would only begin later this year, sources quoted by «Bloomberg» said (behind paywall).
AmBank Group and MetLife formed the partnership in 2014, which offers life insurance and wealth protection services in the country.
«Bloomberg» noted that Malaysia's insurance industry has been undergoing a wave of consolidation. In April, it was reported that P&C player AmGeneral was up for sale again, after the sale process was first initiated in 2017. A 2019 sale to Allianz was shot down by regulator Bank Negara Malaysia. Axa and Affin Bank have also been considering a sale of their life and general insurance businesses in Malaysia.
Committed to Asia
In June last year, Metlife sold its Hong Kong business to FWD Group, while retaining regional units in China, Japan and South Korea, in addition to Malaysia. The insurer operates in 40 markets worldwide.
«MetLife remains very much committed to Asia. This includes [the company’s] strong positions in the three largest insurance markets in the region,» a spokesperson told Insurance Asia News.
