FWD Group Holdings (FWD) has completed an additional investment for a further 21% stake in FWD Takaful. This makes FWD the majority shareholder in FWD Takaful, with a 70% holding. The remaining 30% is held by the Employees Provident Fund. JAB Capital is no longer a shareholder after the 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, MD, FWD Group.
FWD Takaful's family takaful product portfolio to customers in Malaysia include term life, critical illness, cancer, hospital cash benefit 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," said Dutta.
Malaysia is the fourth-largest life insurance market by premium in Southeast Asia1. Insurance penetration2 is less than 5% alongside attractive macroeconomic fundamentals and favourable demographics.
FWD Group first entered the Malaysian market in 2019 as a provider of family takaful products with its acquisition of a 49% interest in FWD Takaful. Later that year, FWD Group established its regional technology and innovation hub in Kuala Lumpur, with a focus on delivering best-in-class technology and supporting innovation across the whole company.
In 2023, FWD Group created a full-service offering in Malaysia, featuring both family takaful and life insurance solutions with its establishment of FWD Insurance. This followed the completion of the company's investment, together with other investors, in the business formerly known as Gibraltar BSN, on 3 April 2023.
The Southeast Asia region is strategically important for FWD Group, with more than half of its value of new business3 contributed by its operations in the region. FWD Group is a top five insurer and top bancassurer within its Southeast Asia markets, on an annual premium equivalent4 basis.
1 NMG; Swiss Re
2 NMG
3 For the six months ended 30 June 2023
4 For the nine months ended 30 September 2023