AMMB TO FI­NALISE IN­SURANCE DEAL BY YEAREND

Insurance - - COMPANY CORNER -

Source: The Star, 23 Au­gust 2013 Ac­cord­ing to the Group Manag­ing Direc­tor Ashok Ra­ma­murthy, AMMB Hold­ings Bhd is ex­pect­ing to short­list a new part­ner for its in­surance busi­ness in Oc­to­ber and fi­nalise the deal by year-end. The group had ini­ti­ated a bid­ding ear­lier aim­ing to di­vest up to 70 per cent of its in­surance busi­nesses AmLife In­surance Bhd and AmFam­ily Taka­ful Bhd. Ac­cord­ing to past re­ports, the deal for the in­surance as­sets could be worth as much as US$600 mil­lion (RM1.99bil­lion). Ashok noted that the group was well ad­vanced in the search for po­ten­tial part­ners and had com­pleted round one of the process. Fol­low­ing the cen­tral bank’s re­sponse, AMMB would then em­bark on the pre­sen­ta­tions and val­u­a­tions to short­list one po­ten­tial part­ner for the cen­tral bank’s ap­proval. Ashok ex­plained that the group thinks it has an at­trac­tive life in­surance and taka­ful story for the next 20 to 25 years and would like to stay in­vested in the busi­ness with a part­ner who would be able to bring the right ideas and skills to the group. In June, ac­cord­ing to a Bloomberg re­port, AMMB had in­vited four com­pa­nies, in­clud­ing Hong Kong ty­coon Richard Li’s Pa­cific Cen­tury Group, to make sec­ond-round bids for its life in­surance units. Man­ulife Fi­nan­cial Corp, Metlife Inc and Zurich-based ACE Ltd had also been in­vited to sub­mit bind­ing of­fers for as much as 70 per cent of AmLife In­surance Bhd and AmTaka­ful Fam­ily Bhd.

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