FWD Group inks deal to snap up a majority stake in Gibraltar BSN Life in a bid to enter the Malaysian life insurance market. The transaction is expected to close in the second quarter of 2023.
Through this deal, FWD Group and other investors will together hold a 70% stake in Gibraltar BSN, which was sold by The Prudential Insurance Company of America.
Bank Simpanan Nasional (BSN) will continue to hold the remaining 30% stake ownership in Gibraltar BSN.
Once the deal has been finalised FWD said that it will partner with BSN to further develop and grow Gibraltar BSN.
Existing customers and distribution channels of Gibraltar BSN will not be affected by this investment and all existing policies will continue to be honoured. Customers will also be able to continue accessing the company’s products and services.
Additionally, existing customers and distribution channels of FWD Takaful will not be affected. FWD Group plans to rebrand the Gibraltar BSN business at a later date.
Malaysia is the fourth largest life insurance market by premium in Southeast Asia, with highly attractive macroeconomic fundamentals and favourable demographics.
FWD Group entered the Malaysian market in March 2019 to provide family takaful products, including term life, critical illness, cancer, hospital cash benefit and medical protection.
Huynh Thanh Phong, Group Chief Executive Officer and Executive Director of FWD Group said,
“We’re excited to bring our digitally-enabled products and services to more people in Malaysia.
With these strategic developments, we also substantially complete our footprint across key Southeast Asia markets in the 10th anniversary year for FWD Group.”
Binayak Dutta, FWD Group Managing Director, Emerging Markets and Group Chief Distribution Officer said,
“Our partnership with BSN underscores our commitment to the Malaysian market and we look forward to playing our part in the growth and development of Malaysia’s takaful and insurance sectors.
Since establishment, our business in Malaysia has gone from strength to strength.”
