Tokio Marine sells Takaful interests

Tokio Marine is pulling out of its Takaful joint venture with Malaysian Islamic bank Hong Leong.

The Japanese insurer has gained regulatory approval to sell all of the shares it holds in Malaysia Takaful company, Hong Leong Tokio Marine Takaful Bhd, to Hong Leong Group.

A spokesperson from Tokio Marine said the parting of the ways came about with the realization by both parties that Tokio Marine and Hong Leong's Asian expansion strategies had begun to diverge.

Tokio Marine and Hong Leong "have come to agree amicably to dissolve their business alliance and pave their respective paths of development because of differences between Tokio Marine's Asian strategies and Hong Leong's strategies concentrated on Takaful, life and general insurance business in Malaysia," said Tokio Marine in a statement.

The two companies teamed up in 2006 with Hong Leong being the senior partner in the venture holding 65% of the stock.

A spokesperson from Tokio Marine's Dubai office told The Islamic Globe that he was unable to add anything further. Hong Leong Group did not respond to requests for comment.

(The Islamic Globe, 15 March 2011)