Last update12:51:45 AM

AMTakaful (eventually) opens for business

Malaysia’s 12th fully-fledged Takaful operator, AmTakaful, has eventually registered with Bank Negara Malaysia enabling it to start selling family Takaful products in the country.

Late last year The Islamic Globe reported on the signing of the shareholder’s agreement between Friends Life, a subsidiary of Guernsey-based Resolution Ltd, and AMMB Holdings, a subsidiary of AmBank Group (see Issue 44). The capitalization of the new venture is RM100m ($32m) with Friends Life putting up RM30m ($9.6m) and AMMB RM70m ($22.4m).

The license for the JV was issued in 2010 following Malaysia’s 2009 announcement of the liberalization of its financial sector. At the time BNM announced that up to two new family Takaful licenses would be granted. It has since issued four, in a move widely seen by industry players as a push to open up the largely untapped insurance and Takaful market.

The regulator expects Takaful penetration to reach 18% by 2013, with Family Takaful dominating. AmFamily Takaful is the fourth and last of the JVs to begin operations, following ING Public Takaful Ehsan, Great Eastern Takaful and AIA AFG Takaful. AmBank Group could not provide The Islamic Globe with details of AmFamily Takaful’s range of products but local reports suggest the operator will offer protection, investment-linked savings and pension products.

AmFamily Takaful will be headed by former AIA Takaful International CEO Wan Zamri Wan Zain.