Malaysia: HSBC gets nod to sell 49% of its takaful business to FWD

Source: Middle East Insurance Review | Jan 2019

HSBC Holdings has received regulatory approval to sell its 49% stake in HSBC Amanah Takaful (Malaysia) to FWD Life Insurance Company (Bermuda) Ltd, a subsidiary of Hong Kong-based insurer FWD Ltd.

The banking group said in a statement that it has decided to exit the takaful business to focus on its banking operations in Malaysia, adding that it would continue to distribute insurance products in that market.

The transaction, approved by the Finance Ministry via Bank Negara Malaysia, is expected to be completed in the first half of 2019. The remainder equity stake in the takaful business are JAB Capital Bhd (formerly known as Jerneh Asia Bhd), which holds 31%, and the Employees Provident Fund, which has 20%, according to HSBC Amanah Takaful’s website.

Speculation about the deal surfaced in August last year when Reuters reported that FWD had agreed to take up the stake as part of its expansion plan in Asia. Outside of Hong Kong, the FWD Group spans Macau, Singapore, Thailand, Indonesia, the Philippines, Vietnam and Japan. M

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