Hong Kong-based AIA is the life insurance unit of American International Group, which was rescued by the U.S. government in an $85 billion bailout last week.
The licence, given by Malaysia's central bank, will allow AIA Bhd's unit, AIA Takaful International Bhd, to offer family and general takaful and takaful re-insurance in international currencies, it said in a statement.
Under Islamic insurance, members contribute to a pool of funds which is used to indemnify participants who suffer a loss.
The funds are invested according to the sharia, or Islamic law, which avoids interest-bearing loans and gambling, pork and alcohol-related activities. Profits made are distributed among members.
'It is significant step for AIA Bhd as we enter the growing Islamic financial market as a niche player offering consumers the choice of takaful solutions in international currencies,' AIA Bhd Chief Executive Khor Hock Seng said.
(Reporting by Jalil Hamid, Editing by Lincoln Feast) Keywords: AIG MALAYSIA/INSURANCE tf.TFN-Europe_newsdesk@thomsonreuters.com cmr COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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