Friends unveils Malaysian Takaful business
From Asia Dec 13 2011 BY: Will Jackson
, Contributing editor
, International Adviser
Friends Life has launched its Shariah-compliant insurance business in Malaysia.
As International Adviser reported, AmLife, the Malaysian insurer in which the company took a 30% stake in 2008, was conditionally granted a Takaful licence last year.
Today’s announcement to the London Stock Exchange marked the signing of a shareholder agreement by Friends Life with AMAB, a wholly-owned subsidiary of AmBank Group.
The deal establishes AmFamily Takaful Berhad, which will manufacture and sell Shariah-compliant family Takaful business, subject to final approval from the Malaysian regulator.
Initial paid-up capital of AmFamily Takaful will be RM100m ($31m), of which Friends Life is contributing RM30m and AmBank the remaining RM70m. The chief executive officer of AmFamily Takaful will be Wan Zamri Wan Zain.
John Van Der Wielen, Friends Life's recently-appointed managing director of its international business, hailed the deal as "an exciting development".
Takaful offers an alternative to conventional insurance, allowing members to pool money, to guarantee each other against loss or damage.