MAA Takaful’s acquisition will not affect existing customers, says Zurich Insurance

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As the new owner, Zurich will continue servicing MAA Takaful customers and their contracts remain valid, with all obligations honoured until the term ends.

As the new owner, Zurich will continue servicing MAA Takaful customers and their contracts remain valid, with all obligations honoured until the term ends.

KUALA LUMPUR: Existing Takaful contracts of MAA Takaful Bhd (MAA Takaful) will be unaffected by the Zurich Insurance Company Ltd’s takeover of the company.

As the new owner, Zurich will continue servicing MAA Takaful customers and their contracts remain valid, with all obligations honoured until the term ends.

In a statement yesterday, the leading multi-line insurer said it had entered into a conditional share purchase agreement (SPA) to acquire 100 per cent of the shares of MAAT from MAA Group Bhd (MAAG) and Solidarity Group Holding BSC.

MAAG currently owns 75 per cent of the shares of MAAT and the remaining 25 per cent is held by Bahrain-based Solidarity.

“The transaction has been approved by the Minister of Finance (Malaysia), but remains subject to the approval of MAA Group Bhd’s (MAAG) shareholders, amongst other customary closing conditions.

“The closing of the transaction is expected to take place within three months of this signing and we will be paying RM525 million for the acquisition.

“About RM400 million will be paid at closing of the transaction and the balance on the third anniversary of it, in accordance with the terms and conditions of the SPA, subject to certain adjustments,” Zurich said.

MAA Takaful is a leading provider of takaful products in Malaysia, recording about RM528 million in gross earned contributions in 2015. — Bernama