In a bourse filing, AMMB said its wholly owned unit AMAB Holdings Sdn Bhd entered into an implementation agreement today with MetLife, Great Eastern Life Assurance (M) Bhd (GELM) and Great Eastern Takaful Bhd (GETB) to dispose AMAB and MetLife’s entire equity stake in AmMetLife Insurance Bhd (AML) and AmMetLife Takaful Bhd (AMT) to GELM and GETB, respectively, for RM1.12 billion.

AMAB owns 50% minus one share in AML and 50% plus one share in AMT, while US-based MetLife holds the remaining stake in both units.

The proposed disposal is subject to approval by Bank Negara Malaysia (BNM), the minister of finance, and the Monetary Authority of Singapore.

Upon completion of the disposal, GELM will hold 100% of AML and GETB will hold 100% of AMT.

The deal will also see the four insurance companies entering into an exclusive 20-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) Bhd and AmBank Islamic Bhd, across Malaysia.

AMMB group CEO Sulaiman Mohd Tahir said the synergistic integration provides the group with the advantage of securing economies of scale that will translate into superior customer value.

“We are excited about the potential this alliance holds. We are committed to utilising this strategic collaboration as a springboard for innovation, developing tailored solutions to meet the needs of our diverse customers at different life stages in the Malaysian market,” he said in a statement today.

The partnership between the two groups dates back to April 2014 when MetLife took up half of the shareholdings in AmLife Insurance and AmFamily Takaful (later renamed AmMetLife Takaful) for US$249 million.

AMMB’s shares closed 2 sen or 0.5% higher at RM3.72, valuing the group at RM12.33 billion.