Household HSBC Watch

KUALA LUMPUR: HSBC Insurance (Asia Pacific) Holdings Ltd expects its joint-venture with Jerneh Asia Bhd and the Employees Provident Fund (EPF) as a takaful operator to be profitable in three to five years.

Zarir J Cama
“The prospects are huge, given the scope and potential of the local insurance market, which is, by many accounts, still under-tapped,”said HSBC Bank Malaysia Bhd group general manager and deputy chairman Zarir J Cama.

He said takaful insurance currently has a low penetration rate of 5% out of 36% for the entire insurance industry in Malaysia.

“The new company will be capitalised at RM100mil and is expected to be in operation by the third quarter of this year,” Cama said after the joint-venture agreement was signed by the parties yesterday. Under the agreement, HSBC Insurance would take up 49% of the equity in the new company while Jerneh Asia and EPF would take up a 31% and 20% stake respectively.