Thursday May 8, 2008
Khazanah accord on world’s largest retakaful group
KUALA LUMPUR: Khazanah Nasional Bhd yesterday signed an agreement with the Dubai Banking Group (DGB) and Asia Capital Reinsurance (ACR) to form the world's largest retakaful group, ACR ReTakaful Holdings Ltd.
ACR ReTakaful will have a capital base of US$300mil and two operating companies to be based in Kuala Lumpur and the Middle East.
Khazanah and DBG will each directly hold 40% interest in ACR ReTakaful while ACR will hold the remaining 20%.
By virtue of Khazanah's 32% stake in ACR, it will be the largest effective shareholder in the retakaful group.
“This is an exciting investment for us, as it consolidates Khazanah's position as a key player in the regional reinsurance and retakaful sector,” Khazanah managing director Datuk Azman Mokhtar said in a statement.
This follows Khazanah's earlier investments of US$200mil in ACR to become the joint largest investor. It also has invested RM175mil in ACR Malaysia to become the major shareholder in the Kuala Lumpur-based reinsurance firm.