Malaysia: Syarikat Takaful Malaysia segregates its family and general businesses
Source: Middle East Insurance Review | Jul 2018
Syarikat Takaful Malaysia (STMB) has announced the conversion of its composite licence to single licences and splitting of the company into two entities to operate its family takaful and general takaful businesses separately.
The segregation of the businesses, which took effect in June, is in accordance to the legislative requirement of the Islamic Financial Services Act 2013 (IFSA).
All composite licensed takaful operators are now required to convert their single licences and split into two separate entities due to the different risk characteristics and nature of businesses with effect from 1 July.
“The conversion of our composite licence to single licences signifies the key objective of our strategic move to maintain the current lines of our businesses while facilitating the expansion of our businesses in the longer term,” said group CEO Mohamed Hassan Kamil.
“The Ministry of Finance and Bank Negara Malaysia have approved the conversion exercise of STMB, namely a family takaful business licence under a new name – Syarikat Takaful Malaysia Keluarga (STMKB), formerly known as Syarikat Takaful Malaysia, that will act as the holding company to manage the family takaful business.
“The other entity is a new company which is a wholly-owned subsidiary of STMKB by the name of Syarikat Takaful Malaysia Am (STMAB) set up to manage the general takaful business. The transfer of our general takaful business to the newly incorporated entity of STMAB includes employees, assets and liabilities, intermediaries and contracts,” Mr Hassan said. M