MALAYSIA: AMMB Holdings Berhad has decided to cancel its previously planned sale of two Malaysian insurance units to Singapore-based insurer Great Eastern Holdings. The transaction, valued at 1.12 billion ringgit, was initially agreed upon in 2023 but has now been called off by mutual consent. The affected subsidiaries, AmMetLife Insurance Berhad and AmMetLife Takaful Berhad were transferring their ownership to Great Eastern’s Malaysian units. AMMB confirmed the cancellation but did not provide specific reasons for the decision. The cancellation also involved MetLife International, AMMB’s joint venture partner in the businesses.
A growing insurance sector amid economic progress
According to an article by Insurance Business Magazine, Malaysia’s life insurance market remains on a positive growth trajectory despite the setback. According to GlobalData, the sector is forecast to reach MYR77.3 billion in direct written premiums (DWP) by 2028, reflecting a steady compound annual growth rate (CAGR) of 5.2% from 2024 to 2028. The Malaysian economy is also showing signs of recovery, with a 4.2% growth in the first quarter of 2024, up from 2.9% in the previous quarter. This economic expansion is driven by private consumption and increased investment activity, providing a stable environment for the insurance industry.
Regulatory and market shifts impacting the industry
The insurance landscape in Malaysia is also undergoing significant changes, particularly in terms of digital transformation. In July 2024, Bank Negara Malaysia introduced new regulations for insurers and takaful operators as part of its Financial Sector Blueprint 2022-2026. These guidelines aim to enhance market efficiency, competition, and accessibility, which could further bolster the sector’s growth.
In contrast, Singapore’s life insurance market faces slower growth. However, it is expected to recover in 2025, supported by demographic shifts and rising demand for personal accident, health, and life insurance.