30th Jan 2006 17:21
HSBC Holdings PLC30 January 2006 HSBC OBTAINS APPROVAL TO ESTABLISH JOINT VENTURE ISLAMIC INSURANCE COMPANY HSBC Insurance (Asia Pacific) Holdings Limited has obtained approval from BankNegara Malaysia to form a joint venture Takaful (Islamic insurance) company inMalaysia in partnership with Jerneh Asia Berhad and The Employees Provident Fundof Malaysia (EPF). It is proposed that HSBC Insurance will take up 49 per cent of the equity in thenew company for a consideration of MYR49 million (approximately US$13 million).Jerneh Asia will take a 31 per cent stake for MYR31 million and EPF will take 20 per cent, injecting MYR20 million into the joint venture. The new company will be capitalised at MYR100 million (approximately US$26 million). It is expected to offer a range of life and general Takaful products to both retail and corporate customers. Zarir J Cama, Deputy Chairman and Chief Executive Officer of HSBC Bank MalaysiaBerhad, said: "Through this licence to develop a Takaful joint venture withJerneh Asia and The Employees Provident Fund of Malaysia, we intend to build onthe success of the Islamic banking business HSBC Bank Malaysia has developed since 1994. We are excited about the growth opportunities offered by Malaysia'sTakaful industry, which has a low penetration rate of 5 per cent amid apopulation that is 60 per cent Muslim." The completion of the transaction is subject to various conditions includingobtaining regulatory and other approvals. The consideration from HSBC will besatisfied from the HSBC Group's internal resources. Notes to editors 1. Jerneh Asia Berhad Jerneh Asia, through its 80 per cent-held Jerneh Insurance Berhad, is a leadinggeneral insurance provider in Malaysia. Jerneh Insurance was established in 1970and offers a wide range of general insurance cover for both commercial andretail clients. With shareholders' funds standing at over RM100 million, todayJerneh has the capacity to underwrite large projects in Malaysia, Singapore,Indonesia, the Philippines, Myanmar, Thailand, the Hong Kong SAR, mainland Chinaand Australia. 2. The Employees Provident Fund of Malaysia The Employees Provident Fund (EPF) of Malaysia is a national savings scheme,providing basic financial security for retirement to private and non-pensionablepublic sector employees in Malaysia. The EPF has over 5.2 million active membersand manages funds totalling RM253.6 billion. Established in October 1951, theEPF continues to play a catalytic role in the nation's socio-economic growth,consistent with its position as a leading savings institution in Malaysia. 3. HSBC in Malaysia HSBC's presence in Malaysia dates back 121 years. The Group established itsfirst office in Malaysia in 1884 on the island of Penang, with privileges toissue currency notes. HSBC Bank Malaysia Berhad was locally incorporated in 1994and became the first foreign financial institution to be localised. HSBC BankMalaysia currently employs some 4,700 people and has a network of 36 branches. 4. The HSBC Group HSBC Insurance (Asia Pacific) Holdings Limited and HSBC Bank Malaysia Berhad aremembers of the HSBC Group which, with over 9,700 offices in 77 countries andterritories and assets of US$1,467 billion at 30 June 2005, is one of theworld's largest banking and financial services organisations. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings