Bank Negara Malaysia (BNM) has approved MNRB Holdings Bhd to initiate discussions regarding the potential sale of its Islamic insurance unit, Takaful Ikhlas, according to sources familiar with the matter.
The Kuala Lumpur-listed reinsurer may now begin negotiations with Bank Kerjasama Rakyat Malaysia Bhd, Great Eastern Life Assurance Malaysia Bhd, and Syarikat Takaful Malaysia Keluarga Bhd, the sources said, requesting anonymity due to the private nature of the talks.
The discussions are still at an early stage and may not necessarily lead to a transaction, the sources added. A representative for MNRB stated that the company regularly reviews its strategic investments but did not provide further details on the potential sale.
Takaful Malaysia’s CEO Nor Azman Zainal declined to comment directly on MNRB’s plans but said the company remains open to opportunities that could strengthen its market position. “There is significant growth potential in Malaysia’s Islamic insurance sector,” he noted. Representatives for BNM, Bank Rakyat, and Great Eastern Life did not respond to requests for comment.
Industry sources said that MNRB began exploring a potential sale of Takaful Ikhlas last year, engaging with insurers and private equity firms to gauge market interest. Backed by state-owned asset manager Permodalan Nasional Bhd, MNRB was reportedly seeking around RM1 billion (US$255 million) for the unit.
Founded in 2002, Takaful Ikhlas provides insurance products that comply with Islamic principles and currently serves approximately two million policyholders, according to MNRB’s website. The unit has played a key role in the company’s portfolio, contributing to the growth of Shariah-compliant insurance offerings in Malaysia.
The potential sale comes as part of MNRB’s broader strategy to optimise its business portfolio and focus on core operations, while offering strategic investors an opportunity to expand their presence in Malaysia’s growing Islamic insurance market.
