Great Eastern Holdings announced it is acquiring of 100% of the shares in AmMetLife Insurance Berhad (AML); and 100% of the shares in AmMetLife Takaful Berhad (AMT) from AMMB Holdings. As part of the transaction, GEH will be entering into exclusive twenty-year bancassurance and bancatakaful agreements for the distribution of life insurance and family takaful products with AMMB and its subsidiaries including AmBank Islamic Berhad in Malaysia.
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.
In 2019, GEH acquired PT QBE General Insurance Indonesia. In 2006, Great Eastern and Chongqing Land Properties Group set up Great Eastern Life Assurance (China) Company (GELC), in a 50:50 joint venture. In 2012, GEH divested a 25% stake in GECL to Chongqing City Construction Investment (Group) Co. In 2015, Evergrande acquired a 50% stake in the Great Eastern Life Assurance (China).
The property company paid 3.93 billion yuan to buy up 50% of Great Eastern Life Assurance (China), eventually renaming the Great Eastern entity Evergrande Life Insurance.
However, because of its debt problems, Evergrande had to divest its insurance company. In September this year, the National Administration of Financial Regulation in China approved of the transfer of Evergrande Life Insurance to Haigang Life Insurance, a new company with capital from five state-owned entities including the Shenzhen government. Evergrande Life Insurance had reported insolvency, with losses of over US$5.5b in 2021 and total liabilities exceeding total assets by nearly US$2.6b at the end of that year according to the Chinese press.
