Zurich Insurance has been given the go-ahead to take full control of MAA Takaful in Malaysia. MAA Takaful had been a joint venture between MAA Group Berhad (formerly known as MAA Holdings Berhad) and Solidarity Company BSC (C) of Bahrain.
The Shari’ah-compliant insurer had been established through a joint venture agreement in 2006. On 2 May 2006, MAA Takaful was incorporated with a paid up capital of MYR 100 million and licensed on 1 July 2007 as a composite Takaful Operator. Today, MAA Takaful has an agency force of over 10,000. MAAG held a 75 per cent equity interest in MAA Takaful while Solidarity held 25 per cent.
On 30 November 2015, MAA Group, Solidarity and Zurich Insurance had jointly submitted an application to Bank Negara Malaysia (BNM) for approval of the Minister of Finance pursuant to the Islamic Financial Services Act 2013 (IFSA) to enter into an agreement with Zurich for the proposed disposal by MAA Group and Solidarity of their respective equity interest held in MAA Takaful.
In a statement to Bursa Malaysia on 27 April, MAA Group confirmed that he Minister of Finance of Malaysia had, by a letter from BNM dated 27 April 2016, approved the proposed disposal of its 75 per cent equity interest in MAAT to Zurich under Section 101 of the IFSA. Solidarity received a separate letter of approval from BNM approving the proposed disposal of its equity interest in MAA Takaful to Zurich.
The value of the deal has not been disclosed.
Originally published on www.cpifinancial.net