AmAssurance For Sales

AMMB Holdings Bhd has hired global financial services firm Morgan Stanley to sell about half of its life insurance and takaful operations as it seeks a new partner to expand the business. AMMB could be willing to sell 51% of its insurance division and may price the deal at RM500 million for stakes in AmLife Insurance Bhd and AmTakaful Family Bhd.

The news came on the tail of a Jan 8 announcement that AMMB had repurchased 30% stakes in AmLife and AmFamily Takaful from its joint-venture partner Resolution Ltd for RM245 million.
AmLife has assets totalling RM3 billion at the end of September 2012, and gross earned premiums of RM214.5 million for the half year ending that month. AmTakaful had assets of RM116.2 million and gross premiums of RM14.2 million.

The Malaysian takaful sector is expected to expand at about 20% annually in 2013 and 2014, spurred by awareness and spending by consumers and regulatory reforms to support takaful infrastructure.
The report said takaful’s investment income will be supported by stronger participation and liquidity in sukuk and Shariahcompliant instruments, in addition to the strengthening of takaful and retakaful capacity.