Buletin Takaful

Source: The Edge Daily, 2nd June 2008

In order to gain the edge in any business game, a company has two possible sure-hit strategies to consider. It can either become a first-mover in the industry or emerge as the biggest player among its peers.

UAE-based financial services company Dubai Group is not the first to venture into the Islamic reinsurance business but it aims to be among the biggest.

It recently tied up with Malaysian government investment arm Khazanah Nasional and Asia Capital Reinsurance Group Pte Ltd (ACR) to set up the world’s largest retakaful company, ACR ReTakaful Holdings Ltd, with a capital base of US$300 million (RM975 million).

Under the partnership, Dubai Banking Group and Khazanah will hold 40% stake each in the Islamic reinsurance company, while ACR will take the remaining stake.

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Source: The Edge Daily, 19th May 2008

When the fifth largest global insurer — Aviva Plc — bought a 49% stake in the CIMB Group’s assurance and takaful businesses last July for close to RM1 billion, many within the industry felt it was a high price to pay.

But what’s interesting about the deal is that it allowed Aviva to dip its fingers into the takaful business, which many insurers are eyeing. So far, the segment is restricted to only nine players.
The takaful business offers opportunities not only for the domestic market but also for global players. CIMB-Aviva saw this potential and has already got a head start by applying and receiving the International Currency Business Unit (ICBU) licence from Bank Negara Malaysia to enable it to sell its takaful products overseas.

“We got our international takaful licence late last year. This means we can effectively do takaful insurance in other countries and earnings made are tax exempt. We haven’t used the licence yet but it is a matter of finding the right opportunity. We are looking… we will always look at new opportunities if they make good economic sense to us,” says Simon Machell, Aviva’s Asia-Pacific chief executive based in Singapore.

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Source: The Edge Daily, 13th May 2008

HSBC Amanah Takaful Sdn Bhd, a 49%-owned associate of HSBC Malaysia Bhd, expects its latest takaful offering, the Lifeselect Single Investment Plan, to almost double its premium revenue to RM350 million from RM185 million achieved last year.

“We distinguish this new product from others as it is the only one in the takaful market that offers coverage for 36 critical illnesses, an insurance industry standard,” HSBC Amanah’s acting deputy chief executive officer Mohammed Muqeem said.

Speaking to reporters after the launch of the product here yesterday, he said the product was developed for the local market, particularly targeted at HSBC’s premier customers numbering between 50,000 and 60,000 individuals. It will be distributed via HSBC 40 branches nationwide.

Mohammed said the product would initially be marketed solely in the domestic market, but may be extended to other HSBC markets in the future.

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