KUALA LUMPUR (Apr 28): AMMB Holdings Bhd is selling substantial stakes of about 50% each in its insurance units AmLife Insurance Bhd and AmFamily Takaful Bhd to US-based insurer MetLife Inc for RM812 million.

In a statement to Bursa Malaysia today, AMMB said it was selling 50% plus one share in AmLife to MetLife for RM740 million. AMMB is also disposing 50% less one share in AmTakaful to MetLife.

"The proposal is expected to spur the future growth of AmLife and AmTakaful with MetLife’s vision to build a leading insurer in Malaysia in product design, information technology, customer centricity and innovation.

"To this end, AmLife and AmTakaful will have the advantage of tapping on MetLife’s underwriting excellence, superior claims handling and customer-centric product innovation and capabilities across all channels (including bancassurance, direct marketing, agency management and group)," AMMB said in a statement.

AMMB said a differentiated need-based product mix would facilitate new offerings of innovative products and services to meet customer needs. This would help AMMB expand its bancassurance and bancatakaful businesses.

"The Proposal will also include 20-year exclusive distribution arrangements between AmLife and AmBank (M) Berhad (AmBank), and between AmTakaful, AmBank and AmIslamic Bank Berhad (AmIslamic), for the distribution of life insurance and family takaful products respectively through the branch network of AmBank andAmIslamic across Malaysia," AMMB said.

AMMB said the share sales exercises were expected to be completed by this Wednesday (April 30).

Today, trading of AMMB shares has been suspended since 11.11am in conjunction with the announcement. Trading of the stock, which was last traded at RM7.18, resumes at 2.30pm.

The AMMB-MetLife deal signing was witnessed by US President Barack Obama today on the last day of his visit to Malaysia.

Bernama reported that Prime Minister Datuk Seri Najib Tun Razak and US President Barack Obama today witnessed the signing of several commercial deals between Malaysian and American companies worth US$2 billion in the aviation, biotechnology and insurance sectors.