KUALA LUMPUR: Tune Protect Group Bhd is acquiring 9.99 per cent equity interest in insurance technology (insurtech) startup Laka Ltd for RM2.64 million in cash.
In a filing with Bursa Malaysia, the digital insurer said its wholly-owned subsidiary, Tune Direct Ltd, today signed a new subscription and shareholders agreement to subscribe for the stake.
Registered in England and Wales, Laka operates on a pooled payment system, with a platform that allows consumers to join as members without having to make upfront payments. Monthly claims are instead settled as part of a group risk pool plus a fee.
Tune Protect said the investment in the insurtech company, which was part of a seed round funding, would allow it to widen distribution channels and expand reach through a strategic digital collaboration.
“It is envisioned that the Investment would further accelerate Tune Protect's becoming a leading digital insurer.
“The investment is expected to provide returns on a mid- to long-term period, and should therefore be able to sustain longer-term investor interest in the group,” it added.
The investment is expected to be completed within three months.