FWD Group buys Gibraltar BSN stakes to enter Malaysia's life insurance market

The Hong Kong-based insurers now own 70% of the Malaysian life insurer.

FWD Group Holdings announced investing in Gibraltar BSN Life Berhad, marking their entry into Malaysia's life insurance market.

The agreement will allow the Hong Kong-based insurer and other investors to hold 70% stake in Gibraltar BSN, which they bought from The Prudential Insurance Company of America. Bank Simpanan National (BSN) will continue to hold a 30% stake in the Malaysian insurer.

The deal is expected to close in the second quarter.

The signed agreement will also form a partnership between FWD Group and BSN in providing more services, such as takaful (Islamic insurance) and other life insurance products, while further growing Gibraltar BSN with plans of rebranding the business at a later date.

The agreement will not affect the existing customers and distribution channels of both Gibraltar BSN and FWD Takaful, and all existing policies will continue to be honoured. They can still access the company’s products and services using their preferred channels.

According to Huynh Thanh Phong, Group CEO and Executive Director of FWD Group, the agreement will allow the company to create a full-service offering of solutions in the rapid-growing Malaysian life insurance market with a long-term potential for growth.

For Binayak Dutta, the FWD's Managing Director for Emerging Markets and Group Chief Distribution Officer, their partnership with BSN “underscores our commitment to the Malaysian market.”

“We look forward to playing our part in the growth and development of Malaysia’s takaful and insurance sectors,” he added.