HSBC to divest 49% of its Malaysia takaful business

HSBC Insurance (Asia-Pacific) Holdings will sell 49% of its shares in HSBC Amanah Takaful (Malaysia) Bhd to FWD Life Insurance Company (Bermuda) Ltd.

According to HSBC Bank Malaysia CEO Stuart Miln, the Minister of Finance has already approved the transaction via Bank Negara Malaysia. The deal is expected to be completed during the first half of 2019, the Bernama reported.

“We have decided to exit the takaful manufacturing business and focus on our banking operations here,” Milne said in a statement.

“For the HSBC Group, the transaction does not have any impact on our current businesses in Malaysia, comprising HSBC Bank Malaysia Bhd and HSBC Amanah Malaysia Bhd. Malaysia remains a key insurance distribution market for us and we will continue to support the insurance needs of our customers through our insurance partners.”

Milne added that HSBC seeks to become one of the leading domestic banks in Malaysia, and it is investing significant amounts to achieve this goal.

“HSBC Bank Malaysia’s ongoing US$250 million investment to construct its new Malaysian headquarters in the new financial hub of TRX City underscores our commitment to developing our business in Malaysia,” he said.