Takaful Malaysia converts composite licence to single licences

KUALA LUMPUR: Syarikat Takaful Malaysia Bhd (STMB) today announced the conversion of its composite licence to single licences and splitting of the company into two entities to manage the operations of its family takaful and general takaful businesses separately.
The conversion of STMB’s composite licence to single licences, which takes into effect from June 1, 2018, is in accordance to the legislative requirement of the Islamic Financial Services Act 2013 (IFSA).
“The conversion of our composite licence to single licences signifies the key objective of our strategic move to maintain the current lines of our businesses whilst facilitating the expansion of our businesses in the longer term. The Ministry of Finance (MOF) and Bank Negara Malaysia (BNM) have approved the conversion exercise of STMB, namely a family takaful business licence under a new name of Syarikat Takaful Malaysia Keluarga Bhd (STMKB) (formerly known as Syarikat Takaful Malaysia Bhd) that will act as the holding company to manage the family takaful business.
"The other entity is a new company which is a wholly-owned subsidiary of STMKB by the name of Syarikat Takaful Malaysia Am Bhd (STMAB) to manage the general takaful business. The transfer of our general takaful business to the newly-incorporated entity of STMAB includes employees, assets and liabilities, intermediaries and contracts,” said Datuk Seri Mohamed Hassan Kamil, who will continue to helm Takaful Malaysia as the group CEO and also as the CEO of STMKB.
In accordance with the IFSA, all composite licensed takaful operators are required to convert to single licences and split into two separate entities due to the different risk characteristics and nature of the businesses with effect from July 1, 2018.
This legislative requirement is set to accord greater focus on core areas of expertise amongst the takaful operators whilst ensuring continuous stability in the takaful sector with a pool of sound and efficient industry players.
Hassan Kamil said it will continue to uphold its established brand name of Takaful Malaysia as a household brand amongst Malaysians for over 30 years.
"We are one and the same despite the licence splitting. The only difference is our family takaful business will be officially known as STMKB whilst the general takaful business is STMAB as a result of the conversion exercise."
Nevertheless, its operations for both general and family takaful businesses under the respective entities will remain unchanged. There are no changes to the existing terms and conditions of the takaful certificate contracts issued by both entities.
"Our customers and intermediaries will continue to enjoy the quality service rendered to them. Both STMKB and STMAB will resume operating through its combined network of service centres across 24 locations nationwide.”