8th Aug 2006 09:01
Prudential PLC08 August 2006 Date: Tuesday 8 August 2006 PRUDENTIAL BSN TAKAFUL BERHAD LAUNCHED TODAY Prudential plc (Prudential) and Bank Simpanan Nasional Bhd (BSN) today launcheda takaful joint venture, Prudential BSN Takaful Berhad (PBTB) at a ceremony inKuala Lumpur today. PBTB's shareholders, BSN and Prudential hold 51 per cent and49 per cent respectively of the joint venture company. The new joint venture will offer a range of takaful savings, protection andinvestment products which have been developed with the unique needs of Bumiputra(Muslim Malays), who make up 60% of the population, in mind. PBTB is the firstcompany to launch following Bank Negara's recent issuance of four new takafullicences. A total of nine licences have now been issued. In the past severalyears, the takaful industry has experienced far higher growth than conventionalinsurance, making it one of the fastest-growing segments in the local Islamicfinancial market. Encik Mohamad Salihuddin Ahmad, CEO of the new joint venture (PBTB) thanked BankNegara for the opportunity to help develop the very important takaful industry.Salihuddin said: "From the consumers' perspective, there isn't a better time than now to considertakaful products because more takaful companies means a better choice ofinnovative and competitively priced products and services. "PBTB is different from the other players. We will focus on understanding theneeds of Malaysian customers and designing products to meet these needs. Withmany Bumiputra customers under-insured, we believe there is an opportunity tolaunch new family and general takaful products, including an investment-linkedtakaful product." Mr Ng Keng Hooi, Managing Director, Insurance, Prudential Corporation Asia,said: "Prudential is very pleased to launch the joint venture with BSN, one ofMalaysia's best known and most respected financial institutions. With the launchof PBTB, we have a great opportunity to help Malaysia's largely under-insuredBumiputra market lead more financially secure lives. "The joint venture is very lucky to have two very distinguished parents. Bothare well-trusted brand names. Prudential brings to the partnership strong globalcredentials and substantial experience in insurance - almost 160 years in Europeand over 80 years in Malaysia. BSN is a well known and respected financialinstitution in the country. PBTB will also benefit from the internationalproduct development expertise of Prudential who are leaders in theinvestment-linked insurance market. In addition, we have critical illness andmedical products which we believe will be very attractive to takaful customers.The new joint venture will also leverage Prudential's 7,000 strong agency forceand BSN's 387 branches." Dato' Azim Mohd Zabidi, Chairman of BSN said: "The launch of PBTB marks another significant milestone for BSN as it reflectsthe bank's strong commitment towards providing a complete range ofshariah-compliant financial solutions, covering Islamic Banking and takaful thatis tailor-made to meet the demand of the consumers. We believe the emergence ofPBTB in the Islamic financial landscape is timely. It meets the aspiration ofthe Government to accelerate the penetration of takaful and bring its benefitsto the majority of Malaysians in urban as well as rural areas. PBTB will benefitgreatly from the strengths of the two parent companies. Both are financiallystrong companies whose collective strengths are in agency distribution, branchnetwork, product development and branding. "The bancatakaful will leverage BSN's large branch network and extensiveBumiputra customer base to further extend the company's reach into the takafulmarket. BSN's well established network of 387 branches nationwide and over 7million customers offers substantial access to the Bumiputra market." PBTB head office is located at the Prudential Building in central Kuala Lumpur. ENDS Enquiries: Media Investors/Analysts Jon Bunn 020 7548 3559 James Matthews 020 7548 3561 Valerie Pariente 020 7548 3511 Notes to Editor: 1. Takaful Takaful is an Islamic way of providing insurance cover. Conventional insurancecover incorporates economic elements which are deemed haram (forbidden): namelythe elements of interest, uncertainty, and gambling. This concept is similar inthe banking industry, prompting the introduction of Islamic banking in 1983. The underlying concept behind takaful is a form of shared fund, formed bycontributions (premiums) made by its participants. Payments are then made fromthe shared fund in the event of death (or other contingencies). 2. About Bank Simpanan Malaysia BSN was incorporated on 1st December 1974 under the Ministry of Finance. Withits incorporation, BSN has taken over all the duties and responsibilities of thePost Office Savings Bank. BSN's mission is to encourage savings, investments andsmart financial management among Malaysians to increase their quality of life.BSN now has more than 5,100 employees, 387 branches and 623 automatic tellermachines (ATM) nationwide. BSN has more than 7 million customers spreadthroughout the length and breadth of the country and with savings of more thanRM 7 billion. It has embarked on a number of key initiatives to catalyse the transformation ofthe Bank to stay competitive and to be an entity which is able to createsustainable value. BSN is continuously enhancing its services as well asexpanding its range of products for the benefit of the customers. BSN's mainproducts include Personal Financing, Home loan, Premium Savings Certificate(SSP), Islamic Banking Scheme, Giro and Al-Wadiah savings account, BSNMatrix andBSNMatrix-i debit card and VISA and Mastercard credit card. For more informationon BSN visit www.bsn.com.my. 3. About Prudential *Prudential plc, a company incorporated and with its principal place of businessin the United Kingdom, and its affiliated companies constitute one of theworld's leading financial services groups. It provides insurance and financialservices directly and through its subsidiaries and affiliates throughout theworld. It has been in existence for over 150 years and has £238 billion inassets under management, as at 30 June 2006. Prudential plc is not affiliated inany manner with Prudential Financial, Inc, a company whose principal place ofbusiness is in the United States of America. 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Bytheir nature, all forward-looking statements involve risk and uncertaintybecause they relate to future events and circumstances which are beyondPrudential's control including among other things, UK domestic and globaleconomic and business conditions, market related risks such as fluctuations ininterest rates and exchange rates, and the performance of financial marketsgenerally; the policies and actions of regulatory authorities, the impact ofcompetition, inflation, and deflation; experience in particular with regard tomortality and morbidity trends, lapse rates and policy renewal rates; thetiming, impact and other uncertainties of future acquisitions or combinationswithin relevant industries; and the impact of changes in capital, solvency oraccounting standards, and tax and other legislation and regulations in thejurisdictions in which Prudential and its affiliates operate. This may forexample result in changes to assumptions used for determining results ofoperations or re-estimations of reserves for future policy benefits. As aresult, Prudential's actual future financial condition, performance and resultsmay differ materially from the plans, goals, and expectations set forth inPrudential's forward-looking statements. Prudential undertakes no obligation toupdate the forward-looking statements contained in this statement or any otherforward-looking statements it may make. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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