MNRB Gets Approval to Start Talks on Sale of Islamic Insurer Takaful Ikhlas: Sources

Malaysia’s central bank has approved the start of talks for MNRB Holdings Bhd. to sell its Islamic insurance unit Takaful Ikhlas, according to people with knowledge of the matter.

Kuala Lumpur-listed MNRB can open negotiations with Bank Kerjasama Rakyat Malaysia Bhd., Great Eastern Life Assurance Malaysia Bhd. and Takaful Malaysia, the people said, asking not to be identified because the process is private.

Discussions are at an early stage and may not result in a transaction, the people said.

A representative for MNRB said the company continuously reviews its strategic investments, without elaborating.

Takaful Malaysia Chief Executive Officer Nor Azman Zainal declined to comment on MNRB, but said the company is open to opportunities that can strengthen its market position and that there’s a lot of growth opportunity in Malaysia. Representatives for the central bank, Bank Rakyat and Great Eastern Life didn’t respond to requests for comment.

MNRB last year reached out to insurers and private equity firms to gauge interest in Takaful Ikhlas, people familiar with the matter said at the time. The reinsurer, backed by state-owned asset manager Permodalan Nasional Bhd., was seeking about 1 billion ringgit ($255 million) for the business, the people said.

Founded in 2002, Takaful Ikhlas offers insurance products that comply with Islamic principles and has about 2 million policyholders, MNRB’s website shows.

Photograph: Kuala Lumpur, Malaysia; photo credit: Samsul Said/Bloomberg