MAA targets RM1b gross contributions from takaful biz

KUALA LUMPUR: MAA HOLDINGS BHD [], which recently agreed to sell its insurance units, now has set a target of RM1 billion in gross contributions for its Takaful business.

Its chairman Tunku Dato Ya’acob Tunku Abdullah said on Tuesday, June 28 this was the five-year target set by MAA.

He said MAA would also focus on its unit trust business to grow the group.

Recently, the group recently signed a conditional sale and purchase agreement with Zurich Insurance Co Ltd to sell its insurance business.

The Edge FinancialDaily recently reported MAA appeared to have sold its insurance business cheap for RM344 million cash, valuing its assets at barely 1.36 times book value which is considerably lower than the recent transactions in the industry.

The slew of divestments by local insurers, including JERNEH ASIA BHD [] and PACIFICMAS BHD [], changed hands at above 1.6 times book value.

Berjaya Corp Bhd’s (BCorp) disposal of a 40% stake in Berjaya Sompo Insurance Bhd to its Japanese stakeholder, Sompo Japan Asia Holdings Pte Ltd, seems to have set a new benchmark pricing for general insurers at above three times book value.