KUALA LUMPUR: Malaysian Reinsurance Bhd (MRB) and Pacific Life Re Ltd, Singapore Branch (PLR) today signed a memorandum of understanding (MoU) to provide sustainable retakaful solutions to Family Takaful operators.
Through this partnership, MRB will provide family retakaful solutions through its retakaful division, Malaysian Re Retakaful Division (MRRD).
This MoU which signifies the first strategic partnership between the two companies was signed by MRB president and chief executive officer Zainudin Ishak and PLR managing director Asia & Australia Andrew Gill.
"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 MRB," said Zainudin in a statement.
Also present at the ceremony were MRB Retakaful Division senior vice president and head Mohammad Nizam Yahya and PLR head of SEA marketing, product development and alt distribution Vasan Errakiah.
"MRRD has access to MRB’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," Zainudin said.
PLR 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 MRB’s access to international research and data through the usage of the underwriting technology powered by PLR's fully-owned subsidiary, UnderwriteMe.
This will allow the company to offer competitive and
innovative products and services to its clients in the future.
"We are delighted to support Family Takaful solutions in Malaysia as we continue to expand our footprint in Asia.
"By leveraging on PLR’s comparative advantages such as superior data insights and leading technology through
UnderwriteMe, we are confident that MRB will further enhance its market-leading offering to its Family Takaful Operators clients," Andrew Gill said.
This partnership is expected to benefit both MRB and PLR 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 MRB and PLR are recognised by major rating agencies.
MRB, the largest national reinsurer in Southeast Asia by assets, has a financial strength rating of A by Fitch Ratings and A- by AM Best.
PLR, a global life reinsurer, is rated AA-(stable) by Standard & Poor’s.
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