Hong Leong Assurance

KUALA LUMPUR: Hong Leong Financial Group Bhd (HLFG) expects its takaful unit to register a gross contribution of RM100 million for the financial year ending June 30, 2011 from RM65.45 million last year.

The company’s takaful unit has now adopted a new name, Hong Leong MSIG Takaful Bhd (HLMT). This follows the acquisition of a 35 per cent equity interest by Mitsui Sumitomo Insurance (MSI) in HLMT for RM33.64 million.

HLFG president and chief executive officer Raymond Choong said with the new partnership, HLFG and MSI are now common strategic partners in the Malaysian insurance business, covering life and general insurance as well as takaful.

“We are optimistic that we can now further accelerate our growth as one of the leading insurance and takaful providers in Malaysia by leveraging on each other’s strengths, expertise and know-how,” he said.

He was speaking at a media conference to announce details of HLFG and MSI’s takaful partnership here yesterday. HLFG has at present a one per cent hold over the Malaysian takaful market.

Hong Leong Assurance Bhd (HLA) chief executive officer Loh Guat Lan said the company was looking to expand its distribution channels and leverage on the partnership with MSI to introduce innovative products as well as a strategic product mix.

“The synergistic activities of training and product development, are well in place, and we are looking forward to the roll-out of a series of compelling products from July,” she added.

Hong Leong obtained the takaful licence from Bank Negara in March 2006. Its takaful unit commenced business in November that year with a paid-up capital of RM100 million and authorised capital of RM1 billion.

In June 2010, MSI acquired a 30 per cent stake in HLA for RM940 million to expand into Malaysia’s life insurance business.