Allianz Malaysia

Allianz ends HSBC Amanah takeover talks

Allianz Malaysia, a subsidiary of the German Allianz SE, has ended discussions to acquire HSBC Amanah Takaful. The company announced it has discontinued its negotiations with the shareholders of HSBC Amanah, namely HSBC Insurance (Asia-Pacific), JAB Capital and Employees Provident Fund (EPF). The life and general insurer did not give a reason why the talks failed. Allianz Malaysia CEO, Zakri Mohd Khir, previously said that he had been approached by takaful operators in the past, but the asking price was too high. Allianz Malaysia had been pursuing a bid for HSBC Amanah since October last year. Allianz Malaysia saw its net profit rise by a marginal 1.1% to RM312.13 million in the financial year 2016 (FY16) from RM308.87 million in FY15 due to higher gross earned premiums and investment income. Revenue also grew by 3.5% to RM4.68 billion from RM4.52 billion.

Allianz gets nod to start talks to buy HSBC Amanah #Takaful

Allianz Malaysia has received the green light to begin stalks to acquire HSBC Amanah Takaful (Malaysia). According to Allianz, Bank Negara Malaysia (BNM) has no objection in principle for Allianz to commence negotiations with HSBC Insurance (Asia Pacific) Holdings, JAB Capital and the Employees Provident Fund Board on the proposed acquisition. This is subject to all parties concluding the negotiations within six months from BNM's written approval. Pursuant to the Islamic Financial Services Act 2013, parties concerned are required to obtain the prior written approval from BNM or the Minister of Finance on the recommendation of BNM, before entering into any agreement to effect the proposed acquisition.

Allianz still keen on takaful business but ‘in no rush’

German insurer Allianz Malaysia is still keen on takaful business but is in no rush to get a licence, according to its CEO Jens Reisch. The Bursa Malaysia-listed company is involved in both general and life businesses, but unlike most other insurers, it does not have any takaful tie-ups. Reisch added that Bank Negara Malaysia (BNM) is not issuing any new takaful licence. He believes, however, that the implementation of the Islamic Financial Services Islamic Act (IFSA) will consolidate the industry and require additional capital for family takaful licence. Reisch also said that they were reviewing takaful constantly and closely, and if there was a chance to get a licence or a chance to team up or acquire another takaful company, his company would explore.

Takaful Ikhlas sale

The consolidation happening within the Malaysian Takaful sector continues quickly with MNRB Holdings, formerly Malaysian National Reinsurance Berhad, in the final stages of talks it has been having with the Malaysian subsidiary of German financial services giant Allianz, Allianz Malaysia, to sell a stake in Takaful Ikhlas, its Takaful subsidiary.
MNRB is looking to get rid of a 49% interest in Takaful Ikhlas, a move that was approved by the central bank late last year, and talks have been progressing since then.

Allianz boosts Malaysian Takaful market

The over-insured but tiny Malaysian Takaful market may be about to see yet another new entrant. It seems that Allianz Malaysia is about to enter the market by acquiring a stake in Takaful Ikhlas.
The Malaysian Takaful market is worth around $10bn and is attractive to new entrants more for its growth potential rather than its present value. The market is growing at between 15% and 20% a year.

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