Kuala Lumpur, 12 December 2019 – Malaysian Reinsurance Berhad (“Malaysian Re”) and Pacific Life Re Limited, Singapore Branch (“Pacific Life Re”) today signed a Memorandum of Understanding (“MoU”) to provide sustainable retakaful solutions to Family Takaful Operators. This MoU which signifies the first strategic partnership between the two companies was signed by Zainudin Ishak, President & Chief Executive Officer of Malaysian Re, and Andrew Gill, Managing Director Asia & Australia of Pacific Life Re. Also present at the ceremony were Mohammad Nizam Yahya, Senior Vice President & Head of Malaysian Re Retakaful Division and Vasan Errakiah, Head of SEA Marketing, Product Dev & Alt Distribution, Pacific Life Re.
Through this partnership, Malaysian Re will provide family retakaful solutions through its retakaful division, Malaysian Re Retakaful Division (“MRRD”). “We commenced our venture into the retakaful business in 2016 by providing general retakaful solutions to our customers. The formalisation of the strategic partnership today marks a milestone for us as we expand our business into family retakaful. We are excited and ready for this business expansion, and are positive that it will be a growth catalyst for Malaysian Re,” said Zainudin Ishak.
He added, “MRRD has access to Malaysian Re’s best underwriting practices and market reach. This collaboration with Pacific Life Re signifies that we are on right path to being a strong family retakaful provider.”
Pacific Life Re will provide support for MRRD’s Family Takaful business through its technical pricing, underwriting, product development, experience analysis, and global insights.
This collaboration is expected to expand Malaysian Re’s access to international research and data through the usage of the underwriting technology powered by Pacific Life Re’s fully-owned subsidiary, UnderwriteMe. This will allow the Company to offer competitive and innovative products and services to its clients in the future.
Andrew Gill commented, “We are delighted to support Family Takaful solutions in Malaysia as we continue to expand our footprint in Asia. By leveraging on Pacific Life Re’s comparative advantages such as superior data insights and leading technology through UnderwriteMe, we are confident that Malaysian Re will further enhance its market-leading offering to its Family Takaful Operators clients.”
This partnership is expected to benefit both Malaysian Re and Pacific Life Re in terms of business growth as a result of the encouraging upsurge of the takaful segment. Based on ISM’s report, it is forecasted that, in year 2030, Family Takaful will overtake Life Insurance in terms of number of certificate in-force.
Both Malaysian Re and Pacific Life Re are recognised by major rating agencies. Malaysian Re, the largest national reinsurer in Southeast Asia by assets, has a financial strength rating of A by Fitch Ratings and A- by A.M. Best. Pacific Life Re, a global life reinsurer, is rated AA- (stable) by Standard & Poor’s.