“The addition of AML and AMT's insurance and wealth protection solutions will supplement the Great Eastern group's product offerings. Their exclusive 20-year distribution partnership for all their Malaysian life insurance and family takaful products through AMMB's banking subsidiaries' network will increase the group's accessibility within Malaysia,” S&P says.
S&P Global Ratings says Great Eastern Holdings (SGX:G07
) ’ (GEH) Malaysian subsidiary-led proposed acquisition of AmMetLife Insurance Bhd. (AML) and AmMetLife Takaful Bhd. (AMT) will enhance its market leadership within the Malaysian insurance and takaful market.
The consideration for the proposed acquisition and exclusive twenty-year distribution partnership is approximately RM1,121 million (or the equivalent of $325 million). Based on the audited financial statements of AML and AMT as at March 31, the aggregate net asset value of AML and AMT was approximately RM819 million. The cash resources are “modest” compared to GEH’s financial resources S&P points out.
