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Daily Insurance Industry News
Tuesday 14th of August 2018
December 23, 2008

Prudential to expand Malaysian Takaful business

by David Masters

Story link: Prudential to expand Malaysian Takaful business

Prudential to expand Malaysian Takaful business

Malaysian Islamic insurer Prudential BSN Takaful Bhd (PruBSN) is set to invest over $2 million (£1.4 million) to launch seven new branches.

The joint venture firm is 51% owned by Malaysian lender Bank Simpanan Nasional Bhd and 49% owned by UK-based Prudential Plc.

It plans to set up two new branches in Malaysia’s capital Kuala Lumpur, with the other five branches to be located in state capitals around the world.

Takaful, a form of Islamic insurance, is seeing rapid growth within the risk management sector. Global takaful premiums currently total $2-3 billion, a figure that is set to reach over $7 billion by 2015.

Since its inception in 2006 PruBSN has grown from 20 staff to 200. It has 190,000 policy holders, over one third of which are non-Muslims.

Takaful policy holders contribute to a pool of funds, which is used to pay claims.

The funds can only be invested according to Shariah law. Under Shariah, investment in interest bearing loans, gambling, pork, and alcohol related activities are all forbidden.

Profits made from the fund are distributed among policy holders.

 

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