Tomahawk, WI 04/29/2014 (Basicsmedia) – New York-based Metlife Inc (NYSE:MET) and AmBank (M) Berhad from Kuala Lumpur, decided to work together upon a $250 million project to distribute savings and insurance products, including Takaful-branded Islamic insurance contracts. The signing demonstrated the thriving nature of the bilateral commercial relations between Malaysia and the United States, and was witnessed by Najib Razak, the Malaysian Prime Minister and the President of the United States of America, Barack Obama.

Fulfilling Their Intentions

Obama stated that it was a good day for American business, at the signing ceremony held in Kuala Lumpur yesterday, April 28. He also mentioned that these deals reflected their commitment towards stepping up their game in Malaysia, and would aid with job-creation in several states – including North Carolina and Ohio. This transaction was the apparently the largest of three that had beenbroadcasted by the United States administration during Obama’s visitto Malaysia.

This long-term,tacticalcollaboration intends to capture a growing demand for family Takaful products and services in Malaysia. The stock purchase would see MetLife owning50% plus one share in AmLife Insurance Berhad, with the left-over shares being owned by AmBank, and AmBank is owning 50 % plus one share in AmFamily Takaful Berhad,with the remaining shares in the possession of Metlife Inc (NYSE:MET).

Upon completion, the total consideration payable by MetLife is RM812 million,subject to adjustments.

 International Financial Cooperation

This new collaboration is an example of the mutual benefit that crops up from expanding business collaboration between the U.S and Malaysia, which Obama and Malaysian PM Najib Razak have promised to continue to assist and encourage.

As part of this deal, Metlife Inc (NYSE:MET) will be providingsubstantial management resources to the newly-formed joint ventures and simultaneously, AmTakaful, and AmLife will respectively be entering into exclusive 20-year long banctakaful and Bancassurance agreements to provide innovative and customer-centric products via AmBank Group’s network.

This deal is expected to be executed in its entirety by the end of the April, following which a staggered integration process will be initiated.With operations in close to fifty countries, MetLife believes that it would bring its financial resources, network, expertise and customer- centric models to Malaysia with the intention of improving a variety of choice and general experience that Malaysian consumers go through, while simultaneously leveraging AmBank Group’s perspectives for the same.

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