Takaful - Malaysia: Zurich takes over 100% of MAA Takaful
Source: Middle East Insurance Review | Jun 2016
Malaysia’s MAA Group Bhd (MAAG) together with Bahrain-based Solidarity Group Holding have agreed to sell their stakes in MAA Takaful Bhd (MAAT) to Zurich Insurance Co for MYR525 million (US$129.6 million).
The acquisition by Zurich will mark the entry of Europe’s fifth biggest insurer into the world’s second largest Islamic insurance market.
In a filing with Bursa Malaysia, MAAG said it is selling its 75%-ownership to Zurich for MYR393.75 million in cash, It added that its original costs of investment in MAAT were MYR75 million. On the other hand, Solidarity’s 25% interest in MAAT will amount to MYR131.25 million.
Both entities received approval from the Minister of Finance Malaysia, vide Bank Negara Malaysia’s letter dated 27 April for the proposed disposal. The deal to acquire MAAT was first proposed in June 2015.
On 30 November 2015, MAAG, Solidarity and Zurich jointly submitted an application to the authorities to enter into an agreement for the proposed disposals.
This venture into takaful is said to allow for greater penetration into Zurich’s core markets in the Gulf and Southeast Asia, in addition to strengthening its presence in Bahrain, Qatar and the UAE.
MAAT, incorporated on 2 May 2006 as a joint venture between MAAG and Solidarity, is one of Malaysia’s 11 Islamic insurers.
MYR1 = US$0.25