HSBC Insurance (Asia Pacific) Holdings Limited, an indirect wholly-owned subsidairy of HSBC Holdings plc, has reached an agreement with FWD Life Insurance Company (Bermuda) Limited, a subsidiary of FWD Limited, for the sale of its 49 per cent shareholding in HSBC Amanah Takaful (Malaysia) Berhad (HATB) to FWD.

The transaction has obtained approval from the Minister of Finance, via Bank Negara Malaysia, and is expected to be completed during the first half of 2019.

"We have decided to exit the takaful manufacturing business and focus on our banking operations in Malaysia.

“This transaction relates only to a change in ownership for the takaful joint venture, for the HSBC Group, the transaction does not have any impact on our current business in Malaysia, comprising HSBC Bank Malaysia Berhad and HSBC Amanah Malaysia Berhad.

“Malaysia remains a key insurance distribution market for us and we will continue to support the insurance needs of our customers through our insurance partners,” said HSBC Bank Malaysia Berhad chief executive officer, Stuart Milne.

“Malaysia is one of eight scale markets for the HSBC Group, this means that we aspire to be one of the leading domestic banks in that market, playing a full and universal role and competing at scale.

“HSBC remains highly committed to Malaysia and to retaining our position as a leading international financial institution in the country.

“We have a long history in the country and plan to continue serving our customers and investing in our people, network and business,” added Milne.

“HSBC Bank Malaysia Berhad's ongoing US$250m investment to construct its new Malaysian headquarters in the new financial hub of TRX City underscores our commitment to developing our business in Malaysia," concluded Milne.

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