Takaful - Pakistan: Crescent Star Insurance to buy majority shares in Pak-Kuwait Takaful
Source: Middle East Insurance Review | Feb 2016
General insurer Crescent Star Insurance Limited (CSI) is to buy majority shares of Pak-Kuwait Takaful Limited with management control, subject to regulatory approval, according to a bourse filing.
A statement to the Karachi Stock Exchange said CSI has signed a memorandum of understanding to acquire 62.5% of controlling shares of Pak-Kuwait Takaful, “subject to all necessary legal and corporate approvals from the relevant regulatory authorities”. The price of the acquisition was not disclosed.
The acquisition will allow CSI, a conventional insurer, to operate in the growing takaful sector. “We would run the takaful firm as a subsidiary,” CEO and Managing Director Naim Anwar told The News International.
“The other option…was to apply for an acquisition of a licence to SECP to operate a takaful window at our conventional business offices with minimum PKR50 million (US$468,810) in cash…but in this case, we have to start from zero in the Islamic insurance sector,” he said.
“Pak-Kuwait Takaful is a good running business with a premium base of PKR600-700 million and with a good (client) portfolio,” Mr Anwar added.
He said they would get the firm listed sometime in 2016 or 2017 after the acquisition. “This is part of our business strategy. The listing would help us raise funds to expand the business in future,” he said.
The acquisition will expand CSI business nationwide, with the addition of Pak-Kuwait Takaful’s 15-20 branches to CSI’s 18-20 branches in the country.
PKR1 = US$0.01