MetLife, Inc.

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Slightly Bearish -15

AMMB and MetLife said to be weighing options for insurance JV - KLSE Screener

Company update Joint venture AI-generated analysis

📰 AMMB and MetLife are weighing strategic options for their insurance joint venture, including a possible sale.

🔄 The review is prompted by recent M&A activity in Malaysia's insurance sector following a failed 2023 exit attempt to Great Eastern.

👔 AMMB appointed Wan Saifulrizal Wan Ismail as CEO of AmMetLife Insurance in March, succeeding Rangam Bir.

💻 The group consolidated conventional insurance and takaful operations onto one shared platform while closing the agency channel.

📈 AmMetLife Insurance profit after tax rose 5.9% to RM37.8 million in FY2026 despite a 3.6% drop in gross written premiums.

📉 AmMetLife Takaful narrowed its loss to RM6.3 million in FY2026 as gross written premiums surged 51.8% to RM288.9 million.

📊 AMMB's total insurance segment profit increased slightly to RM105 million, accounting for 5% of the group's total FY2026 profit.

⚠️ In 1QFY2027, AMMB's insurance profit fell sharply to RM8.6 million due to lower investment income and net earned premiums.

🏥 The business faces challenges including rising medical inflation, cost pressures, and intensifying competition in the market.

Bullish Signals
  • MetLife is maintaining a roughly 50% stake in AmMetLife Insurance Bhd and AmMetLife Takaful Bhd alongside AMMB.
  • The joint venture narrowed its loss to RM6.3 million in FY2026, driven by strong top-line growth with gross written premiums rising 51.8% to RM288.9 million.
  • AmMetLife Insurance reported a profit after tax increase of 5.9% year-on-year to RM37.8 million in FY2026.
Risk Factors
  • AMMB and MetLife are reportedly weighing options including a possible sale of their insurance joint venture business.
  • A previous deal to sell the venture to Great Eastern for RM1.12 billion failed due to regulatory issues in Malaysia and Singapore.
  • AmMetLife Insurance gross written premiums declined 3.6% year-on-year to RM774.8 million in FY2026.
  • In 1QFY2027, AMMB's insurance profit after tax fell significantly to RM8.6 million from RM32.4 million a year earlier.
  • The decline in Q1FY2027 profit was mainly due to lower investment income and net earned insurance premiums.
Full Analysis
AMMB Holdings Bhd and MetLife International Holdings LLC are reportedly weighing strategic options for their joint-venture insurance businesses, AmMetLife Insurance Bhd and AmMetLife Takaful Bhd. Sources indicate the parties are considering all possibilities, including a potential sale of the venture, amidst a flurry of mergers and acquisitions in Malaysia's insurance sector. The review follows a failed 2023 attempt to sell the joint venture to Great Eastern Holdings for RM1.12 billion due to regulatory hurdles. Since that termination, AMMB and MetLife have shifted focus back to building the business, appointing new leadership and consolidating their conventional insurance operations onto a shared platform while maintaining separate takaful entities for regulatory compliance. Financially, AmMetLife Insurance reported a 5.9% year-on-year profit increase to RM37.8 million in FY2026, though gross written premiums declined by 3.6%. Conversely, the takaful arm narrowed its loss to RM6.3 million driven by strong top-line growth of 51.8% in gross written premiums. AMMB's total insurance segment profit rose slightly to RM105 million, representing 5% of the group's total FY2026 profit. The joint venture faces headwinds including rising medical inflation and intensifying competition. In the first quarter of FY2027, AMMB's insurance profit fell significantly to RM8.6 million from RM32.4 million a year earlier, primarily due to lower investment income and net earned premiums. Despite these challenges, the recent operational restructuring suggests shareholders still see value in the business.