Zurich Insurance Co. Ltd., a subsidiary of Zurich Insurance Group, has completed the acquisition of MAA Takaful Berhad (MAAT), a leading provider of Takaful products in Malaysia, from MAA Group Berhad and Solidarity Group Holding BSC.
The combination of MAAT’s range of products and Zurich’s existing insurance solutions enables it to provide customers in Malaysia with a full suite of insurance products and solutions spanning life insurance, general insurance, family takaful and general takaful.
Zurich will pay 525 million Malaysian ringgit (approximately US$134.6 million). Approximately MYR400 million was paid at the closing of the transaction and the remaining amount will be paid on the third anniversary after the closing in accordance with the terms and conditions of the share purchase agreement and subject to certain adjustments, said a statement issued by Zurich Insurance Co.
“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 does not affect existing takaful certificate holders, said the company, noting that it will continue servicing existing MAAT customers and their certificates will remain valid, with all obligations honored until the end of their term.
Stuart A. Spencer, Zurich general insurance chief executive officer for Asia Pacific said the takaful market in Malaysia is fast growing, as a result of 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.
Salim Majid Zain, chief executive officer of MAAT, commented: “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.”
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