ING Public Takaful expects to break even in 2 years

Newly-launched ING Public Takaful Ehsan Bhd expects to break even in two years before controlling a 10 per cent market share of the Islamic insurance sector by 2015.

ING Public Takaful is a strategic alliance between ING Management Holdings (Malaysia) Sdn Bhd with a 60 per cent stake, and Public Bank Bhd and Public Islamic Bank Bhd – with 20 per cent each.

Chief executive officer Saiful Yazan Ahmad said ING Public Takaful will embark on a three-pronged strategy to grow its market share to 10 per cent with projected contributions of over RM800 million by 2015.

“The company will have the advantage of leveraging in ING and PBB Group’s leadership positions, and established infrastructure in the insurance and banking industries to drive growth and solidify its position in the family takaful space,” he told reporters after the company’s launch here yesterday.

ING Public Takaful plans to market its products through a 10,000 strong agency force and also through Public Bank and Public Islamic Bank’s network of 250 branches,

In conjunction with its launch yesterday, the firm introduced its maiden product, a Mortgage Reducing Term Takaful product. It has plans to launch three more products this year.

“The next one would be an investment-linked product in May. This will be followed by a term plan and subsequently in the last quarter, we plan to launch a group term takaful and medical product,” he said.

The ultimate goal, he said, is to make the company a leading provider of medical insurance products in the local market.

ING Public Takaful aims to achieve RM31 million in premium or contribution in its first year of operation, driven by potential in takaful, which still has a low penetration rate in Malaysia.

“The penetration rate of takaful among the 16 million Muslims in the country is only around 10 per cent, compared to the conventional insurance, which is around 45 per cent,” he said.

The company may also venture into foreign markets, but Saiful said there was nothing concrete yet.

Public Bank managing director and chief executive Tan Sri Tay Ah Lek said the business’ initial revenue contribution to Public Bank may be low but expected it to be significant in three years.

Also present at the launch was Bank Negara Malaysia deputy governor, Datuk Mohd Razif Abd Kadir.