AIA and Alliance Bank Malaysia have formed a joint venture that offers a range of Takaful financial products for Malaysian clients.

Malaysia's Takaful market presents a sizeable opportunity for AIA as it opens up access to a large Muslim population who are now able to purchase Shariah-compliant products. In a statement, the company said that the country's Takaful market is growing at an average of 40 per cent annually, compared to the insurance industry, making it one of the fastest growing segments in the local financial market.

"The new partnership brings together financial strengths and expertise of two very powerful brands to meet the needs of Malaysians. AIA AFG Takaful Bhd will pursue these four key strategies: adopt a multi-distribution approach to access more clients, offer customer-centric products and services, create an empowering workplace for employees, and leverage on scale to deliver operating efficiency," said Khor Hock Seng, chief executive and managing director of AIA.

AIA AFG Takaful is 70 per cent owned by AIA, while the remaining 30 per cent is held by Alliance Bank.