Britain's second-largest insurer Prudential said on August 08 it had launched an Islamic insurance joint venture in Malaysia with Bank Simpanan Nasional Bhd, building its fast-growing Asian business.
Prudential BSN Takaful Berhad (PBTB) will be 49 percent owned by Prudential and will offer a range of takaful, or Islamic insurance, products including savings and investment.
Conventional insurance cover incorporates economic elements which are deemed forbidden for Muslims, including interest.
Islamic insurance resembles conventional mutual insurance. Premiums are paid into a pool which customers effectively own, with any surplus repaid to customers, less the insurer's fee.
Prudential said the takaful industry has grown faster than conventional insurance, making it one of the fastest growing segments in the local Islamic financial market.
"With the launch of PBTB, we have a great opportunity to help Malaysia's largely under-insured Bumiputra (Malay) market lead more financially secure lives," said Ng Keng Hooi, insurance managing director at Prudential Corporation Asia.
Asia accounts for roughly a third of Prudential's profits.
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