TAKAFUL - New (Malaysian) takaful player sets RM1b target (and eyes towards Indonesia)

NEWLY-FORMED Great Eastern Takaful Sdn Bhd has set a target to win more than RM1 billion in premiums by 2015 by focusing on Malaysia and regional countries like Singapore and Indonesia.

Although some 41 per cent of Malaysians have conventional insurance, only 8 per cent have takaful, making the business highly attractive.

"This large untapped market presents an enormous business opportunity for us, which we hope to translate into a significant engine of growth for the group," chief executive officer Mohamad Salihuddin Ahmad said after the official launch of Great Eastern Takaful in Kuala Lumpur yesterday.

Great Eastern Takaful, a 70:30 venture between Singapore's Great Eastern Holdings Ltd and Koperasi Angkatan Tentera Bhd (KAT), will get help from its sister company Great Eastern Life Malaysia.

Salihuddin expects the company to only make profit in its fourth year. In 2011, it aims to secure RM180 million in total weighted contributions from some 40,000 policyholders.

Great Eastern Takaful will also use the distribution channel of OCBC Al-Amin, the Islamic banking unit of OCBC Bank. The Singapore bank holds 87 per cent of Great Eastern.

The company can also leverage on KAT's 140,000 members and probably recruit soldiers who opt for early retirement to become their agents.

It now offers two taka-ful products, I-Idaman and I-Abadi.

"I-Idaman provides protection, while I-Abadi provides investment opportunities. It is actually very affordable, starting with a minimum of RM100 a policy," he said.

The company also plans to expand to Brunei, Indonesia, Singapore as well as China.

"We hope to expand our takaful business in Indonesia by the second half of 2011 but our immediate one will be in Brunei because we have our own branch outlet in Bandar Seri Begawan," he said.

Source : http://www.btimes.com.my/articles/getsb/Article/ - Dec 11, 2010