FWD Life Insurance Co. (Bermuda) Ltd. is buying the 49% stake in HSBC Amanah Takaful (Malaysia) Bhd. that HSBC Holdings PLC holds through its indirect wholly owned unit, HSBC Insurance (Asia-Pacific) Holdings Ltd., The Edge Markets reported.
FWD Life Insurance Co. (Bermuda) is a unit of Hong Kong's FWD Ltd.
HSBC is selling its stake in the takaful manufacturing business as it wants to focus on its Malaysian banking operations. The report came after Reuters reported in August that FWD agreed to acquire the stake, with plans to eventually take a majority stake in HSBC Amanah Takaful by acquiring shares from current shareholders.
Malaysia's central bank has approved the proposed deal, which is expected to close in the first half of 2019.
JAB Capital Bhd. holds 31% and the Employees Provident Fund owns 20% of HSBC Amanah Takaful, according to the report.