Local news sources have claimed that the Malaysian Takaful market is on the cusp of a wave of M&As.
The Malaysian Star quoted Ernst & Young's Brandon Bruce Sta Maria, who said the smaller Islamic insurers will continue to be targets for foreign entities keen to enter Malaysia's booming Takaful industry.
Since changes in January to ownership rules, allowing foreign firms to take up to a 70% stake in Malaysian insurers, large foreign insurers, including Axa and Fairfax, Zurich and Alliance have all staked claims in Malaysian insurance and Takaful firms.
The Star also cites Takaful Ikhlas's CEO, Syed Moheeb Syed Kamarulzaman, who feels that while organic growth is important, in order to expand quickly Takaful firms are better off going down the merger route.
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