AXA Indonesia Closes Shariah Business

AXA Insurance Indonesia (formerly known as Mandiri AXA General Insurance/MAGI) has announced plans to close its Shariah business unit. The portfolio transfer, a cancel-and-replace plan, has in principle received approval from the Financial Services Authority (OJK).

AXA Insurance’s takaful portfolio of policies will be transferred to another takaful company through a “cancel and replace” mechanism with the new insurer giving policyholders the same benefits as AXA Indonesia. However, AXA Insurance did not say which Islamic insurers would be accepting the portfolio.

The closure of AXA Insurance's Shariah business unit is a move related to the OJK’s requirement for insurance companies to spin off their Islamic insurance units (UUS) no later than 2026.

To comply with the regulations, insurance companies can spin off their takaful units to a newly established company, merge their takaful units with others, or cease their Shariah insurance business.