Hong Kong-based FWD Group on Monday announced that it has completed the acquisition of a 49 per cent stake in HSBC Holdings’ Asia Pacific insurance unit, HSBC Amanah Takaful (Malaysia) Bhd.
Owned by tycoon Richard Li, FWD is now the largest shareholder in the joint venture and intends to rename the business to FWD Takaful Bhd. It will be the company’s ninth market across the region and also the first takaful business unit of the group.
FWD is the insurance arm of private investment group Pacific Century Group, which operates across Hong Kong and Macau, Thailand, Indonesia, the Philippines, Singapore, Vietnam, Japan and Malaysia.
“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,” said FWD Group CEO Huynh Thanh Phong.
The insurer also appointed Salim Majid Zain as the CEO of FWD Takaful, who will be responsible for leading, overseeing and growing all aspects of the business. Salim was the CEO of Zurich Takaful Malaysia for 12 years.
Last December, HSBC Holdings received the go-ahead from Malaysia’s central bank to divest its 49 per cent stake in its insurance unit to FWD Group. The financial details of the deal were not disclosed.
Besides FWD, other shareholders of HSBC Amanah Takaful include Malaysia’s JAB Capital Bhd (31 per cent) and the Employees Provident Fund (20 per cent).