Asian insurer FWD Group Holdings has completed an additional investment for a further 21% stake in FWD Takaful, making the group the majority shareholder in the Malaysian insurer, with a 70% holding.

The remaining 30% is held by the Employees Provident Fund, a Malaysian state pension fund, while JAB Capital is no longer a shareholder after the transaction.

FWD Takaful, the company says, offers a comprehensive family takaful product portfolio to customers in Malaysia, including term life, critical illness, cancer, hospital cash benefit and medical protection.

Malaysia is the fourth-largest life insurance market by premiums in Southeast Asia, according to Swiss Re, with insurance penetration less than 5% in the country, alongside highly attractive macroeconomic fundamentals and favourable demographics.

FWD Group first entered the Malaysian market in 2019 as a provider of family takaful products with its acquisition of a 49% interest in FWD Takaful. Later that year, FWD Group established its regional technology and innovation hub in Kuala Lumpur.

In 2023, FWD Group created a full-service offering in Malaysia, with both family takaful and life insurance solutions with its establishment of FWD Insurance.

The Southeast Asia region is strategically important for FWD Group, it says, with more than half of its value of new business contributed by its operations in the region. The company is a top five insurer and top bancassurer within its Southeast Asia markets, on an annual premium equivalent basis.

“Our commitment to changing the way people feel about takaful in Malaysia is all about building our presence in the local community over the long term,” states Binayak Dutta, the company’s managing director. “We’ve created a full-service offering to provide both family takaful and life insurance solutions in a rapidly growing market with long-term potential.”