Marking AIA Group’s first entry into Malaysia’s Islamic, Sharia law-compliant takaful market, its Malaysian unit has formed a joint venture with Alliance Bank Malaysia.
“AIA is set to become a major player in the important and fast-growing takaful market in Malaysia,” predicted AIA group chief executive and president Mark Tucker, a former CEO of UK life insurer Prudential.
Products to be initially offered by the new venture, AIA AFG Takaful, will focus on protection, education, savings and investment and will be distributed by AIA’s agency force and through 90 Alliance Bank branches.
According to Alliance Bank, Malaysia is the second largest takaful market in the world after Saudi Arabia and has been growing at an average of 40% annually.
AIA, a 67%-owned unit of American International Group, has been operating in Malaysia since 1948.