KUALA LUMPUR: Zurich Insurance Co Ltd has bought MAA Takaful Berhad (MAAT) from MAA Group Berhad and Solidarity Group Holding BSC for RM525 million.
A statement issued by Zurich Insurance Co said about RM400 million was paid at the closing of the transaction and that the balance would be paid on the third anniversary after the closing.
This, it said, was in accordance with the terms and conditions of the share purchase agreement and subject to certain adjustments.
Insurance Journal reported that the combination of MAAT’s range of products and Zurich’s existing insurance solutions would enable it to provide customers in Malaysia a full suite of insurance products and solutions spanning life insurance, general insurance, family takaful and general takaful.
“The acquisition of MAAT marks a significant milestone for Zurich in Malaysia. It will enable Zurich to enter a new customer segment with a different range of products,” said Philip Smith, chief executive officer of Zurich Insurance Malaysia Berhad.
“This segment has great growth potential and by combining the strengths and capabilities of both Zurich and MAAT, we will be able to provide a wide range of insurance and takaful solutions across multiple customer segments, underpinned by the technical and servicing expertise in the wider Zurich Group,” added Smith.
The transaction, however, would not affect existing takaful certificate holders. The company said it would continue servicing existing MAAT customers and that their certificates would remain valid, with all obligations honoured until the end of their term.
Chief Executive Officer of MAAT Salim Majid Zain said: “Combining Zurich’s international expertise, global brand and financial strength with MAAT’s local market talent will benefit all of our stakeholders. Both our existing and future customers will continue to receive the highest standards for service and solutions we have become known for.”
Stuart A. Spencer, Zurich General Insurance Chief Executive Officer for Asia Pacific was quoted by Insurance Journal as saying the takaful market in Malaysia was growing fast due to significant insurance under-penetration in the Malay population of the country.
“Acquiring MAAT’s local knowledge and takaful expertise will enable Zurich to help meet the growing demand for takaful products in Malaysia,” he said.