Wednesday, May 23, 2018

Foreign insurers rush to meet Malaysia ownership cap

Foreign insurance companies in Malaysia are scrambling to meet the June 2018 ownership cap deadline set by the country’s central bank, Bank Negara Malaysia.

The central bank wants foreign ownership at local insurance companies to be capped at 70%, prompting foreign insurers to prepare for a possible sell of large stakes in their Malaysian operations, according to a Wall Street Journal report.

Over the next nine months, the share sales of foreign insurers could raise almost US$3 billion total, sources said.

Prudential and Tokio Marine Holdings are reportedly in talks with bankers on potential sales of one-third of their shares in Malaysian units while Singapore’s Great Eastern Holdings has engaged at least one local bank to explore a similar move that could raise close to US$1 billion.

Prudential said it remains committed to growing its business in Malaysia.


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