Howden acquires strategic stake in Malaysian broker Malene targeting Asia
Howden, the retail broking arm of Hyperion Insurance Group, is acquiring a strategic stake in Malene Insurance Brokers, a leading Malaysian independent niche broker in the energy and power sector, and a specialist in takaful insurance, which complies with Sharia law. The company is also purchasing the remaining 51 percent of shares in CIMB Howden.
The move is a part of its strategy to further expand across Asia, and follows its recent merger with Thai motor insurance broker Maxi, and acquisition of Asian life insurance broker International Planning Group (IPG) in June 2018.
“The past nine months have been transformational for Howden Asia," said Goh Chye Huat, Howden Asia CEO. "Howden’s growth strategy has always been focused on becoming leaders in the specialist lines and markets that we choose to operate in. By bringing IPG, Malene and Maxi into the group, we are now able to offer clients, across Asia and beyond, leading high net worth life solutions, we have increased our global Islamic finance capabilities, and we are the leading motor broker in Thailand."
"With these two announcements, we have doubled the size of our operations in Thailand, become the second largest multinational broker in Malaysia and have expanded the reach of the Howden brand to new audiences. This is an exciting time for Howden Asia as we increasingly become recognised as the independent alternative to the traditional bigger brokers in Asia,” Chye Huat added.
Following the deal, Malene will join Howden’s other Malaysian business, CIMB Howden Insurance Brokers, under one common locally incorporated holding company HBG Malaysia.
HBG Malaysia has agreed to purchase the remaining 51 percent of shares in CIMB Howden that were held by CIMB Group Holdings’s subsidiary, CIG Bhd., further reinforcing the company's commitment in its strategically important market.
Both CIMB Howden and Malene will rebrand as ‘Howden’ with CIMB Howden Insurance Brokers being renamed as Howden Insurance Brokers Sdn. Bhd. and Malene Insurance Brokers Sdn. Bhd. being renamed as Howden Takaful Brokers Sdn. Bhd. Together, they will be the second largest multinational broker in Malaysia, the company said.
Additionally, Jeffrey Chan will remain as CEO of Howden Insurance Brokers. Ismam Shahrin Ismail will step up from his role as general manager of Malene to become CEO of Howden Takaful Brokers.
Tunku Abang Faisal Amir will be chairman of Howden Insurance Brokers and on the board of both Howden Takaful Brokers and HBG Malaysia. Eddy Hon will remain as country manager for Howden Malaysia and on the board of Howden Insurance Brokers and HBG Malaysia.
CIMB Howden is a specialist financial lines, corporate risks and employee benefits broker and Malene a niche broker with a portfolio of corporate clients within the power, oil and gas, transportation and ports sectors.
Jose Manuel Gonzalez, CEO of Howden Broking Group, commented: “Investing in the right partners in Asia is a key priority for Howden as we continue to broaden our distribution of specialist solutions for clients. By partnering with Malene, we build on Howden’s existing Islamic finance in the Middle East and move closer towards building a leading global takaful capability.”
Chye Huat added: “Since CIMB Howden joined us in 2015 the business has gone from strength to strength. Our latest investments in Malaysia are an important step in achieving our vision of being a leader in each of the markets that we operate in across Asia. I look forward to watching our operations in Malaysia continue to thrive.”
Hon said: “It has long been a key priority for us to better serve government-linked companies and related agencies and the local business community and we have found, in Malene, the perfect partner. Malene’s areas of specialist expertise are extremely complementary to ours and will serve as an enhancement to our specialty portfolio.”
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