Syarikat Takaful down 3.4% after launch of FWD Takaful

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KUALA LUMPUR (July 31): Shares in Syarikat Takaful Malaysia Keluarga Bhd (STMK) declined as much as 3.4% this morning, following news that Robert Kuok-controlled JAB Capital Bhd, the Employees Provident Fund (EPF) and Hong Kong business magnate Li Ka-shing's son Richard Li's launch of a new takaful company FWD Takaful Bhd on Monday.

At 10:14am, the counter fell 22 sen to RM6.17, valuing the company at RM5.1 billion. STMK saw 308,600 shares traded.

According to Bloomberg, seven analysts cover the stock. Two have placed buy calls on the counter, four have placed hold calls and one has placed a sell call, with a consensus target price of RM7.06.

This comes following the launch of FWD Takaful on Monday. The new insurance company will see Pacific Century Group maintain a 49% stake.

Pacific Century was founded and headed by Li, who also owns a stake in FWD through FWD Life Insurance Company (Bermuda) Ltd.

Meanwhile, Kuok Brothers Sdn Bhd wholly-owned unit JAB Capital holds a 31% stake in FWD Takaful, while EPF owns the remaining 20% in FWD Takaful.

This marks the first takaful business for the FWD group — a five-year-old that had offered life and medical, general insurance insurances, as well as employee benefits across eight markets prior to it entering Malaysia.

See also:
Richard Li, Robert Kuok’s JAB Capital, EPF join forces to launch new takaful in Malaysia
Tycoon Richard Li's FWD enters Malaysia's takaful market