Bank Negara approves joint takaful licence for Public Bank and ING

The takaful products to be promoted through the multi-distribution channel of tied agency, bancatakaful and employee benefits currently existing in ING and the PBB.

Bank Negara has approved the joint application by Public Bank Bhd (PBB), Public Islamic Bank Bhd (PIBB) and ING Management Holdings (M) Sdn Bhd for a family takaful licence.

In a joint statement, the three companies said they would set up a joint-venture (JV) company to carry out the family takaful business, with ING holding a 60% equity stake, PBB 20% and PIBB 20%.

The JV company is targeted to be fully operational by the first half of 2011.

According to the statement, it was envisaged to be a leading family takaful provider with 15,000 agents in the long term.

“The takaful products will be promoted via the multi-distribution channel of tied agency, bancatakaful and employee benefits which currently exists in ING and the PBB group,” the companies said.

ING and the PBB group began their 10-year strategic bancassurance alliance in 2008. “Together, they have become the fastest growing bancassurance provider in the country,” the statement said.

View the full story in the Malaysian Star.