Great Eastern subsidiary and Malaysian company establish JV

i-Great and KAT forms a takaful company that was awarded a Family Takaful licence.

I Great Capital Holdings Sdn Bhd (i-Great), a subsidiary of Great Eastern Holdings Limited, has signed a joint venture agreement (JVA) with Koperasi Angkatan Tentera Malaysia Berhad (KAT) on Thursday. In this newly established joint venture takaful company, i-Great holds 70% equity stake while KAT holds 30%.

The JVA signing ceremony was graced by Mrs Fang Ai Lian, Chairman of Great Eastern Holdings and i-Great, and Lt Kol Hamisan bin Mian, Chairman of Koperasi Angkatan Tentera. It was witnessed by Yg Bhg Brig Jen Dato’ Ahmad Zahudi bin Hj Salleh, Chief Executive Officer of Koperasi Angkatan Tentera, and En. Mohamad Salihuddin bin Ahmad, who has been identified to be the Chief Executive Officer of the joint venture takaful company. This partnership is one out of the four successful applicants awarded a Family Takaful licence by Bank Negara Malaysia on 1 September 2010.

Mrs Fang Ai Lian, Chairman of i-Great, commented, “This partnership signifies the coming together of two companies, each bringing its own strengths and expertise. I Great Capital Holdings will function as Great Eastern’s Islamic Finance Headquarters and will drive our Takaful business expansion beyond Malaysia’s shore to the region. Our joint-venture partner, Koperasi Angkatan Tentera, is a well-established co-operative with a very sizable membership and strong financial credentials.

“The new Takaful entity will leverage on the existing agency distribution channel of over 17,000 agents. Our immediate plan is to recruit more bumiputera agents to further strengthen the agency infrastructure. With this synergy, we are confident that we are well-positioned to grow the Takaful business in Malaysia and actively support Bank Negara Malaysia’s aim to make Malaysia an international Islamic financial hub,” she added.

Koperasi Angkatan Tentera, with its solid financial background and supported by its wide geographical coverage of around 140,000 members, is confident that the takaful joint venture business, through its innovative suite of ‘Takaful for all’ products and services, will appeal to the diverse needs of various segments of the Malaysian market, especially Muslims, which have remained largely untapped.

Lt Kol Hamisan bin Mian, Chairman of KAT said, “This joint venture presents new opportunities for both KAT and Great Eastern. It fits well with KAT’s current activities in providing insurance schemes for our members. The establishment of this partnership marks another milestone for the industry as well as for KAT.”