AMMB Holdings Berhad has announced the cancellation of its planned sale of two Malaysian insurance businesses to Great Eastern Holdings, a Singapore-based insurer.
The proposed transaction, valued at 1.12 billion ringgit, was initially agreed upon in 2023 but has now been called off.
According to Reuters, AMMB confirmed that the agreement between its subsidiaries – AmMetLife Insurance Berhad and AmMetLife Takaful Berhad – and Great Eastern’s Malaysian units had been terminated by mutual consent.
MetLife International, AMMB’s joint venture partner in the businesses, was also involved in the decision. However, no specific reasons for the cancellation were provided.
Despite the cancelled deal, Malaysia’s life insurance industry continues to grow, forecasted to reach MYR77.3 billion in direct written premiums (DWP) by 2028, reflecting a compound annual growth rate (CAGR) of 5.2% from 2024 to 2028, according to GlobalData.
Manogna Vangari, an insurance analyst at GlobalData, noted that Malaysia’s economic growth reached 4.2% in the first quarter of 2024, an improvement from 2.9% in the previous quarter. Private consumption and investment activity contributed to the expansion.
Over the 2024-26 period, Malaysia’s economy is expected to grow at an annual average of 4.4%, providing a stable backdrop for the life insurance industry.
Regulatory changes are also shaping market developments. In July 2024, Bank Negara Malaysia introduced new guidelines focused on digital transformation for insurers and takaful operators. These reforms are part of the Financial Sector Blueprint 2022-2026, which aims to enhance market efficiency, competition, and accessibility.
Meanwhile, Singapore’s life insurance market is forecast to grow at a CAGR of 4% from 2025 to 2029, reaching $59.5 billion in gross written premiums (GWP) by 2029, according to GlobalData.
Although the sector experienced a downturn in recent years due to macroeconomic uncertainties and inflation, the Life Insurance Association Singapore reported a 23.5% rise in weighted new business premiums in the first three quarters of 2024. Group life and health insurance premiums also increased, reflecting demand for financial protection amid economic challenges.
Vangari stated that while growth in 2024 is expected to be limited, the sector is likely to recover in 2025, supported by demographic shifts and demand for personal accident and health (PA&H) insurance and whole life policies.