FWD Group has announced the acquisition of an additional 21% share in FWD Takaful Berhad, making it the majority shareholder with a 70% stake. The deal sees the Employees Provident Fund retaining a 30% share, while JAB Capital Berhad exits its investment in the company.
This move marks a significant step in FWD Group’s strategy in Malaysia, a market it first entered in 2019.
“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, Managing Director of FWD Group.
FWD Takaful has established a comprehensive range of family takaful products for the Malaysian market, including offerings such as term life, critical illness, cancer, hospital cash benefit, and medical protection.
Malaysia stands as the fourth largest life insurance market by premium in Southeast Asia, with insurance penetration under 5%. This, coupled with strong macroeconomic fundamentals and favourable demographics, presents a promising landscape for FWD Group’s expansion.
Since its initial entry into the Malaysian market, through the acquisition of a 49% interest in FWD Takaful in 2019, FWD Group has steadily increased its presence in the country. The same year, it established a regional technology and innovation hub in Kuala Lumpur aimed at enhancing technology and innovation across the company. In 2023, FWD Group expanded its service offering in Malaysia to include both family takaful and life insurance solutions through the establishment of FWD Insurance Berhad.
Dutta highlighted the company’s commitment to Malaysia, commenting, “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.”
The Southeast Asia region is a key focus for FWD Group, contributing over half of its value of new business. The company ranks among the top five insurers and top bancassurers in its Southeast Asia markets, based on annual premium equivalent.
