KWAP aims to conclude insurance deal by end-April

Chief executive officer Datuk Wan Kamaruzaman Wan Ahmad, however, has ruled out buying stakes in new projects.

KUALA LUMPUR: The Retirement Fund Inc (KWAP) is targeting to conclude a deal on buying a minority stake in a foreign-owned insurance companies by end of this month.

KWAP chief executive officer Datuk Wan Kamaruzaman Wan Ahmad said that negotiations were still on going and insurance companies were expected to submit their proposals to the Bank Negara within this month.

He, however, declined to name the companies.

“Foreign insurance has until end of this month to submit their divestment plan to Bank Negara,” he told reporters after KWAP’s 2018 financial performance briefing. 

“There are three insurance companies involved, but we are currently talking with two foreign insurance companies,” Wan Kamaruzaman said.

Notably, foreign insurers are looking to cut their stakes in local units to 30% following a directive by the central bank, which looks to increase local participation in the insurance market.

Foreign insurers, namely, AIA Bhd, Prudential Assurance Malaysia Bhd and Great Eastern Life Assurance (M) Bhd , have until June 2018 to meet a 30% local shareholding ruling 

It has been reported that KWAP has proposed to buy a stake in Prudential in a deal to be worth RM1.2bil to RM1.5bil.

KWAP currently has RM140.8bil fund under management and is the second largest pension fund in the country.