FWD Group Holdings Limited, a pan-Asian life insurance business, will enter the Malaysian life insurance market following the signing of an agreement to invest in a majority stake in Gibraltar BSN Life Berhad.
The transaction is expected to close in the second quarter of 2023.
In a press release, it states that FWD Group, among other investors, will together hold a 70% stake in Gibraltar BSN, which was sold by The Prudential Insurance Company of America, the wholly owned subsidiary of US-based NYSE-listed Prudential Financial, Inc.
At the same time, Bank Simpanan Nasional (BSN) will continue to hold the remaining 30% stake ownership in Gibraltar BSN.
Post-completion of the transaction, FWD Group have confirmed that it will partner with BSN to further develop and grow Gibraltar BSN.
“We’re creating a full-service offering in Malaysia and will be able to offer both family takaful and life insurance solutions in a rapidly growing market with huge long-term potential for growth. We’re excited to bring our digitally-enabled products and services to more people in Malaysia. With these strategic developments, we also substantially complete our footprint across key Southeast Asia markets in the 10th anniversary year for FWD Group. Changing the way people feel about takaful and insurance remains the vision that guides our work,” said Huynh Thanh Phong, Group Chief Executive Officer and Executive Director of FWD Group.
“Our partnership with BSN underscores our commitment to the Malaysian market and we look forward to playing our part in the growth and development of Malaysia’s takaful and insurance sectors. Since establishment, our business in Malaysia has gone from strength to strength. We grew gross written contributions by 173% in our first full year of operation, established our regional technology and innovation hub in Kuala Lumpur and partnered with a leading social enterprise in Malaysia to develop Fun(d) for Life, a financial literacy programme supporting over 4,200 individuals,” added Binayak Dutta, FWD Group Managing Director, Emerging Markets and Group Chief Distribution Officer.
Furthermore, existing customers and distribution channels of Gibraltar BSN will not be affected by this investment and all existing policies will continue to be honoured. FWD Group noted that it plans to rebrand the Gibraltar BSN business at a later date.
