Hong Kong-based FWD Group has completed acquisition of HSBC Insurance’s Asia Pacific insurance unit’s 49% stake in HSBC Amanah Takaful (Malaysia), a Malaysian Islamic insurance joint venture (JV).
Following the closing of the deal, FWD becomes the largest shareholder in the Malaysian Islamic insurance JV, which has been renamed as FWD Takaful.
Financial terms of the transaction were not disclosed.
The other shareholders in FWD Takaful are JAB Capital and the Employees Provident Fund Board of Malaysia, which own stakes of 31% and 20%, respectively.
All the takaful certificates that were issued under HSBC Amanah Takaful will be honored by FWD Takaful, said FWD.
The acquisition of stake in the Malaysian Islamic insurance JV marks FWD’s ninth market entry.
FWD Group CEO Huynh Thanh Phong said: “Malaysia represents another landmark market entry and strategic milestone in our journey.
“We see huge potential for growth in Malaysia and I’m excited to work together with our new team in Malaysia to grow our business and footprint through long-term investment and implementation of our customer-led strategy.”
FWD Takaful is the first takaful business unit of the FWD Group. The Malaysian Islamic insurance JV provides life and medical insurance, general insurance, family takaful and employee benefits in various markets in the Asian country.
FWD has appointed Salim Majid Zain as the CEO of FWD Takaful, entrusting him with the responsibility for heading, overseeing and growing all aspects of the Islamic insurance business.
Salim said: “There are significant market opportunities within the takaful sector in Malaysia for us. With the support of FWD Group’s executive team, I’m determined to achieving new milestones and success for our takaful business here together with my team.”
Founded in 2013, FWD is the insurance business of Pacific Century Group, a Hong Kong-based private investment group. The company provides life and medical insurance, general insurance, employee benefits, Shariah and family takaful products across Hong Kong and Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia.
Last October, FWD signed a deal to acquire the majority stake held by Commonwealth Bank of Australia in its Indonesian life insurance venture – Commonwealth Life for an undisclosed price.