Insurers struggling to beat ownership deadline

International companies are still in a bid to achieve the deadline on ownership set by the Bank Negara Malaysia (BNM).

In June 2017, the regulator advised foreign insurers to raise the equity of local shareholders in their firms to at least 30 percent under an initiative to increase local partnership in the market.

Foreign ownership of Malaysian insurers was set in 2009 at 70 percent according to the South China Morning Post. However the stake could be even higher, if the buyer could help consolidate and rationalise the industry.

However, some foreign insurers operating in the country were still allowed to be wholly owned by their overseas parent. The new directive from BNM changes that effective June this year.

The foreign-owned insurance companies affected by the ruling include Great Eastern, Prudential, AIA and Tokio Marine.

It is understood that some insurance firms are talking to bankers to arrange for local partners, while others are mulling over the possibility of going public.