Allianz Malaysia Eyeing Takaful License

Allianz Malaysia Bhd - which has been looking to secure an Islamic insurance or takaful business for several years, will begin negotiations to acquire up to 100% equity interest HSBC Amanah Takaful (M) Bhd.

Allianz Malaysia, a subsidiary of Germany-based financial services giant Allianz SE, told Bursa Malaysia on Friday that Bank Negara, via its letter dated Oct 26, stated it had no objection in principle for the company to begin negotiations with HSBC Amanah Takaful’s shareholders.

The shareholders of the takaful operator, which was set up in 2006, include HSBC Insurance (Asia Pacific) Holdings Ltd (49% stake), JAB Capital Bhd (formerly Jerneh Asia Bhd) (31%) and the Employees Provident Fund Board (20%), which is also a substantial shareholder in Allianz.

The central bank’s approval is subject to all parties concluding negotiations within six months from the date of its letter.

The parties concerned will still have to obtain the prior written approval from Bank Negara or the Finance Minister on the recommendation of the central bank, before entering into any agreement to effect any acquisition.

Allianz Malaysia chief executive officer Zakri Mohd Khir was reported early last year to say that it had been approached by takaful operators in the past but the asking price to acquire the business was too high. “Most takaful companies ib Malaysia are overpriced,” he was quoted as saying. 

Allianz shares closed unchanged on Friday at RM10.18, giving it a market value of more than RM1.7bil.