FWD Group Holdings Limited has finalized an additional investment to acquire an extra 21 percent ownership stake in FWD Takaful Berhad ("FWD Takaful"). With this transaction, FWD becomes the majority shareholder in FWD Takaful, holding a 70 percent stake. The remaining 30 percent ownership is retained by the Employees Provident Fund, while JAB Capital Berhad exits its shareholder position following the completion of this transaction.
"We are delighted to increase our investment in FWD Takaful after first entering the Malaysian market five years ago. Our commitment to changing the way people feel about takaful in Malaysia is all about building our presence in the local community over the long term", said Binayak Dutta, Managing Director of FWD Group.
Presently, FWD Takaful extends a broad array of family takaful products to Malaysian customers, encompassing term life, critical illness, cancer, hospital cash benefits, and medical protection. "With the continued commitment of FWD Group over the years to its development in Malaysia, we've created a full-service offering to provide both family takaful and life insurance solutions in a rapidly growing market with long-term potential", added Binayak Dutta.
Malaysia ranks as the fourth-largest life insurance market by premium in Southeast Asia, boasting an insurance penetration rate of less than five percent. This is complemented by robust macroeconomic fundamentals and favorable demographics. FWD Group initially ventured into the Malaysian market in 2019 by acquiring a 49 percent stake in FWD Takaful, thereby offering family takaful products. Subsequently, in the same year, FWD Group inaugurated its regional technology and innovation center in Kuala Lumpur, dedicated to delivering top-tier technology solutions and fostering innovation throughout the organization.
In 2023, FWD Group expanded its offerings in Malaysia to include both family takaful and life insurance solutions through the establishment of FWD Insurance Berhad. This expansion followed the completion of the company's investment, alongside other investors, in the entity previously known as Gibraltar BSN on April 3, 2023. The Southeast Asia region holds strategic significance for FWD Group, with over half of its new business value generated by its operations in this area. FWD Group stands as a top five insurer and leading bancassurer in its Southeast Asian markets based on annual premium equivalent metrics.