HSBC sells 49% of HSBC Amanah Takaful
In this article (5)
HSBC Holdings plc’s indirect wholly owned subsidiary HSBC Insurance (Asia Pacific) Holdings Ltd is selling a 49% stake in HSBC Amanah Takaful (Malaysia) Bhd to FWD Life Insurance Company (Bermuda) Ltd. The transaction has obtained approval from the Minister of Finance, via Bank Negara Malaysia, and is expected to be completed during the first half of 2019.
“We have decided to exit the takaful manufacturing business and focus on our banking operations in Malaysia. This transaction relates only to a change in ownership for the takaful joint venture. For the HSBC Group, the transaction does not have any impact on our current businesses in Malaysia, comprising HSBC Bank Malaysia Bhd and HSBC Amanah Malaysia Bhd. Malaysia remains a key insurance distribution market for us and we will continue to support the insurance needs of our customers through our insurance partners,” said HSBC Bank Malaysia Bhd CEO Stuart Milne.
Questions & Answers
Q.Which specific HSBC entity is selling its stake in HSBC Amanah Takaful?
Which specific HSBC entity is selling its stake in HSBC Amanah Takaful?
HSBC Holdings plc's indirect wholly owned subsidiary, HSBC Insurance (Asia Pacific) Holdings Ltd, is the entity selling the 49% stake. This is part of HSBC Group's wider strategy mentioned in the article.
Q.What is HSBC's stated reason for divesting from the takaful business?
What is HSBC's stated reason for divesting from the takaful business?
HSBC has decided to exit the takaful manufacturing business to focus on its banking operations in Malaysia. The company aims to concentrate on its core banking services within the region.
Q.What impact will this transaction have on HSBC's other businesses in Malaysia?
What impact will this transaction have on HSBC's other businesses in Malaysia?
The transaction does not have any impact on HSBC's current businesses in Malaysia, which include HSBC Bank Malaysia Bhd and HSBC Amanah Malaysia Bhd. HSBC will continue its other operations there.
Q.How will HSBC continue to serve customers' insurance needs in Malaysia after this sale?
How will HSBC continue to serve customers' insurance needs in Malaysia after this sale?
Malaysia remains a key insurance distribution market for HSBC. The company will continue to support the insurance needs of its customers by working through its established insurance partners.
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