MNRB approved to start talks on Islamic insurer sale: sources

MNRB approved to start talks on Islamic insurer sale: sources

MNRB Considers Sale of Takaful Units Amid Strategic Review

MNRB Holdings Bhd is reportedly exploring the sale of its takaful insurance businesses, held under wholly-owned subsidiaries Takaful Ikhlas Family Bhd and Takaful Ikhlas General Bhd, according to industry sources. While formal approvals for the disposal remain pending, the move has drawn interest from foreign insurers and at least one local banking group, including Allianz Malaysia Bhd and Bank Rakyat Bhd as reported. MNRB has not officially commented on the potential transaction or its strategic rationale.

The takaful segment, which includes both family and general insurance operations, contributed RM1.33 billion in revenue for the nine months ended December 2024, with profit before tax (PBT) at RM64.4 million. However, performance within the segment was mixed: general takaful revenue rose 13.8% year-on-year to RM666.1 million, while family takaful revenue declined 1.8% to RM661.7 million, and its PBT fell sharply by 59.5% to RM6.4 million according to financial data.

MNRB's reinsurance business, which has driven recent profitability, reported RM300.8 million in net profits for the same period on RM2.85 billion in revenue, reflecting robust growth compared to RM195.72 million in net profits for the prior-year period. For FY2024 (ended March 31, 2024), net profits surged 266.4% to RM433.54 million, largely fueled by reinsurance operations. Analysts note that a full divestment of the takaful units could shift MNRB's focus entirely to reinsurance, though this might narrow its revenue streams.

The potential sale resurfaces interest from Allianz, which previously sought to acquire Takaful Ikhlas Sdn Bhd (a predecessor entity) in 2010 but terminated negotiations in 2011. Current discussions, including possible partnerships with MNRB-linked funds, remain in early stages. With 15 takaful operators in Malaysia, the sector remains tightly regulated, and licenses are viewed as valuable assets as the industry indicates.

MNRB, controlled 54% by Permodalan Nasional Bhd, closed at RM1.86 on March 27, 2025, with a market capitalization of RM1.46 billion. The company has emphasized cautious optimism about FY2025 performance but has not disclosed further details on the takaful sale according to company statements.

(https://theedgemalaysia.com/node/751528): The Edge Malaysia Weekly, April 14–20, 2025.