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Sunday, 27 June 2010

News Posts 20100621-20100627

Insurance News Insurance agents are not happy that Tuanku Ja'afar Hospital bans them from meeting their clients in hospital. Agents claim that they need to help their clients to make claims and payments while hospital claim that they were acting following complaints from patients.
SEREMBAN: Insurance agents here are up in arms over a directive prohibiting them from meeting their clients at the Tuanku Ja’afar Hospital (HTJ).
June 27, 2010

Insurance News The details of the proposed Insurance Compensation Scheme (ICS) are out. The consultation paper is available on PIDM's website and the public has until 23 July to provide their views and feedback. The scheme is similar to the deposit insurance scheme that protects depositors in banking institutions but with a higher protection level proposed in ICS.
Perbadanan Insurans Deposit Malaysia (PIDM) has issued a consultation paper on the proposed Insurance Compensation Scheme (ICS) for public feedback.
June 24, 2010

Insurance News TM Asia Life changes its name to Tokio Marine Life and sets itself a target to become 1 of the top 5 insurers in Malaysia by 2015. It needs to increase its market share from the current 3.7% to 6% and improves its current ranking of 11th. It will continue to count on its agency force while at the same time buiding up its bancassurance channel.
The company, formerly known as TM Asia Life Malaysia Bhd, expects to capture 6 per cent of the market share in the life insurance industry from its current 3.7 per cent. For the first quarter of 2010, ...
June 23, 2010

Insurance News Multi-Purpose Insurans' profit target is raised to RM48 mil for next year from the current RM30 mil to RM40 mil figure.
KUALA LUMPUR: MULTI-PURPOSE HOLDINGS BHD [] (MPHB), an investment holding company, is targeting to increase the net profit of its insurance business to RM48 million next year, director T. Vijeyaratnam said.
June 22, 2010

Sunday, 20 June 2010

News Posts 20100614-20100620

Insurance News HLFG and MSI will form strategic partnership for which the transaction is expected to be completed by Q4 2010: 1) GI business of HLA will merge with MSIG, HLA will hold 30% of the merged entity. The merged entity will rank #2 in gross written premium market share 2) MSIG and Hong Leong Bank will sign bancassurance agreement. 3) MSI will buy 30% equity in HLA's life business valued at RM940 mil. The press release is here
KUALA LUMPUR; Hong Leong Financial Group will sell a 30% stake in its insurance unit Hong Leong Assurance Bhd (HLA) to Japanese insurance outfit Mitsui Sumitomo Insurance Co Ltd (MSI) for RM940mil cash.
June 18, 2010

Insurance News Kurnia has applied for 1 of the 2 new takaful licenses. Kurnia is mainly (solely?) in general insurance and the new takaful licenses are limited to family takaful business only (i.e. life). The new CEO for Kurnia is pending BNM's approval.
PETALING JAYA: Kurnia Asia Bhd has applied for a takaful licence and is awaiting the response from Bank Negara, said director of corporate planning/investor relations Dr James Tee.
June 17, 2010

Insurance News Kurnia targets to grow its gross premiums this year by 8% to 10%, up from RM1 bil last year.
Insurer Kurnia Asia Bhd is aiming for an 8% to 105 growth in gross premiums this year from about RM1 billion last year.
June 16, 2010

Insurance News STMB which has RM4.3 bil assets, or 35% of whole takaful industry assets, is aiming to grow its assets by 15% by 2012.
SYARIKAT Takaful Malaysia Bhd, which is 62 per cent owned by BIMB Holdings Bhd, aims to grow its assets by 15 per cent by 2012, riding on the growing awareness among Malaysians on the importance of insurance coverage. ...
June 15, 2010

Insurance News If MTUC is concerned that withdrawal from EPF Account II for treatment of critical illnesses will deplete EPF savings, an alternative is to allow withdrawal of a relatively smaller sum of money from the same account to buy critical illness insurance. Calling for government to foot the bill is not likely to get anywhere given the talk now is cutting government subsidies.
PETALING JAYA: “People should not be encouraged or compelled to withdraw money to treat illnesses. The Government’s healthcare benefits should provide for those who cannot afford to pay for the treatment of critical illnesses,” he said.
June 15, 2010

Insurance News Dato' Muhammad Ibrahim has been promoted to DG while Jessica Chew was promoted to AG for regulation sector. Mohd Zabidi Md Nor meanwhile was promoted as Director of the Prudential Financial Policy Dept, the post vacated by Jessica.
Press Statements >Appointment of Dato' Muhammad Ibrahim as Deputy Governor, Dato' Ooi Sang Kuang as Special Adviser and Puan Jessica Chew as Assistant Governor of Bank Negara Malaysia
June 15, 2010

Insurance News EPF is catching up with insurance companies. Account 2 withdrawal now is allowed for treatment of 36 critical illnesses.
PETALING JAYA: Beginning Tuesday, Employees Provident Fund (EPF) contributors can withdraw money from their Account 2 for the treatment of 36 different critical illnesses, compared with 13 previously.
June 14, 2010

Sunday, 13 June 2010

News Posts 20100607-20100613

Insurance News Despite surviving the recent AGM, both Prudential's Chairman and CEO are still under pressure from shareholders calling for them to either quit or forgo their bonuses.
LONDON: Some of Prudential’s largest investors will demand a shakeup of the company’s leadership over its handling of a botched US$35.5bil bid to take over AIG’s Asian unit, British media reported yesterday.
June 10, 2010

Insurance News In addition to Great Eastern and Fairfax Asia, now Pacificmas is in talk with Tokio Marine on the disposal of Pacific Insurance.
Further to the Company's announcements on 21 April 2010 and 14 May 2010 in relation to the proposed disposal of insurance business, PacificMas wishes to inform the Bursa Malaysia Securities Berhad that ...
June 9, 2010

Insurance News The probabilities of various teams winning the World Cup as predicted by actuaries: Brazil (18.8%), Germany (18.6%), Italy (17.5%), England (6.4%), the Netherlands (5.4%), Spain (5.3%). Do not take this too seriously though, it was based on certain assumptions.
BRAZIL has the highest chance of winning the Soccer World Cup tournament, the Actuarial Society of SA predicted today (June 9).
June 9, 2010

Insurance News BNM needs more time to have dialogue sessions with various parties and hence the TPBID scheme will not be submitted to the Finance Ministry next month as reported earlier.
PETALING JAYA: The implementation of the proposed basic third party motor insurance scheme is expected to be delayed.
June 9, 2010

Insurance News Zurich is buying 80% of PT Mayapada Life, which currently operates mainly through tied agency channel. Bancassurance channel will be developed with Mayapada Bank as partner.
Zurich Insurance Company Ltd has agreed to acquire 80% of PT Mayapada Life, an Indonesian life assurer focused on the distribution of group and individual life and health plans.
June 7, 2010

Insurance News Read for yourself, the live coverage of Prudential's AGM. To keep you in suspense, I will not summarise the outcome of the AGM here.
Chairman Harvey McGrath and chief executive Tidjane Thiam tackled the big question in London today: what went wrong over the AIA deal?
June 7, 2010

Insurance News Prudential achieved a 33% growth in new business in first 5 months of this year, amidst the AIA deal. The announcement is interpreted as an attempt to appease the shareholders over the failed bid for AIA.
LONDON: Insurer Prudential reported stronger sales growth ahead of its annual investor meeting, in an effort to appease shareholder anger over its failed bid for AIG's AIA Asian unit.
June 7, 2010

News Posts 20100531-20100606

Insurance News Prudential will not revive AIA deal. Meanwhile Tidjane will face shareholders in the AGM today.
HONG KONG: British insurer Prudential said yesterday it would not resurrect its failed bid for US insurer AIG's Asian unit, calling speculation about reviving the mammoth takeover "misguided and inaccurate". ...
June 6, 2010

Insurance News The Board of Prudential is supportive of its management and CEO and no resignation is expected. It remains to be seen whether major shareholders would apply pressure for either or both the Chairman and CEO to step down.
LONDON: Prudential chairman Harvey McGrath said yesterday that no heads would roll at Prudential after it abandoned an ambitious takeover of AIG’s Asian unit AIA. “The board is completely behind the management team. ...
June 5, 2010

Insurance News S&P affirms AIA's rating because the sales termination has not affected the ratings and outlook on AIG since the company maintains a level of flexibility in selling AIA, and its overall credit risk characteristics so far remain unchanged.
HONG KONG: Standard & Poor's Ratings Services has affirmed its 'A+' local currency counterparty credit and insurer financial strength ratings on American International Assurance Co. Ltd. (AIA) and American International Assurance Co. (Bermuda) Ltd. (AIAB).
June 4, 2010

Insurance News The sale of Jerneh Insurance is a done deal. However there was no disclosure of the identity of the buyer nor the price of the deal.
PETALING JAYA: Paramount Corp Bhd’s proposal to dispose of its 20% stake in Jerneh Insurance Bhd to an insurance company is a done deal.
June 4, 2010

Insurance News AIG has to repay US government US$101.61 bil in loans, the options available to AIA after Prudential's pull out are: 1) IPO 2) Break up AIA for sale to other companies 3) Find another buyer as large as Prudential which is an unlikely option. Prudential's cost of pulling out of the deal is estimated to be US$659 mil and perhaps the jobs of either or both Chairman and CEO. AIG board was apparently willing to accept the revised deal from Prudential if Prudential could provide assurance that the revised deal would be approved by its shareholders. Prudential apparently could not and hence the failure of the deal.
HONG KONG: British insurer Prudential plc is withdrawing from a US$35.5bil deal to buy American International Group Inc’s Asian life insurance business, American International Assurance Ltd (AIA), paving the way for a potential listing of AIA.
June 4, 2010

Insurance News Prudential has aborted deal to acquire AIA.
HONG KONG: UK insurer Prudential Plc is pulling out of its bold US$35.5 billion takeover of AIG's Asian life insurance arm, ending a three-month battle with shareholders who had argued the deal was over-priced.
June 2, 2010

Insurance News MNRB enjoyed better profits due to release in unearned premium reserve, higher share of profits from reinsurance associate, investment income and wakalah fees. The profits were however partially offset by provision for impairment loss on its investment in Principle Insurance Holdings Ltd.
MNRB Holdings Bhd saw its profits jump 73 per cent to RM45.5 million mainly due to release in unearned premium reserves of Malaysian Re amounting to RM52.4 million, higher share of profits from reinsurance associate, investment income and wakalah fees from its units.
June 1, 2010

Insurance News MAA intends to dispose of its foreign operations in Indonesia and the Philippines and focuses on its core business in Malaysia. The sale of its general insurance business in Malaysia to AmG will help MAA to improve its capital adequacy ratio (CAR). Refocusing on products that are less capital intensive and securing a new partner for life business are 2 other strategies to improve CAR.
There are a few potential suitors who have registered their interest in merger and acquisitions with Malaysian Assurance Alliance, says MAAH CEO
June 1, 2010

Insurance News AMMB has identified its insurance units, in particular the life insurance business to drive its growth.
AMMB Holdings Bhd (1015), the country's fifth-largest banking group, said its short- to medium-term earnings growth will be driven by its investment banking and insurance units, mainly helped by the recovery of the domestic economy and more synergies with its strategic partner, the Australia and New Zealand Banking Group (ANZ).
June 1, 2010

Insurance News AIG is insisting on the original terms of the deal with Prudential. The deal looks likely to fail now if there is no breakthrough as Prudential is not likely to get the 75% vote after announcing that they were renegotiating with AIG and yet failed to lower the price.
HONG KONG: American International Group (AIG) said it would not consider revising the terms of a deal for its Asian life insurance unit with British insurer Prudential Plc, in a move that threatens to derail the industry's largest ever transaction.
June 1, 2010

Insurance News AIG is reported to be lack of good alternatives in the negotiation with Prudential. No other bidder is in sight and IPO option may not get good price due to the euro-zone debt crisis and various Chinese banks going to the market to raise funds at the same time. The article concludes that a deal will be struck and the price tag could be as low as at 15% discount than the original US$35.5 bil.
A game of poker is under way between a U.K. insurer, its shareholders and the U.S. federal government. There's little doubt who's holding aces, and it's not Uncle Sam.
June 1, 2010

Insurance News It was reported that AIG is asking for a price of at least US$32 bil while Prudential is offerring US$29 bil to US$30 bil. US government apparently is agreeable to a lower price than the original tag of US$35.5 bil.
NEW YORK: American International Group Inc (AIG), the bailed-out insurer, remains in negotiations to salvage the sale of its main Asia unit after Prudential plc requested a lower price to win shareholders' approval...
May 31, 2010

Insurance News Terengganu government is considering an insurance plan to cover its 160,000 senior citizens. The benefits of the plan include funeral expenses and compensation for the next-of-kin with indicative figures of RM1,500 and RM30,000 respectively.
KUALA TERENGGANU: Terengganu plans to provide comprehensive insurance coverage for senior citizens so that their relatives need not worry about funeral expenses upon the death of the policy holders.
May 31, 2010

Insurance News Takaful operators are increasingly relying on agency distribution channel to distribute their products, compared to reliance on bancatakaful and direct channels in the past. It is rather surprising to hear an unnamed observer who said that "agency allowed players to reach a bigger customer base at lower management expenses". This contradicts the CEO of Takaful Ikhlas who opines that bancatakaful provides economies of scales while agents are seen as a way to penetrate non-Muslim market.
PETALING JAYA: Promoting takaful via agency is fast gaining prominence with more players now investing significantly to beef up their agency channel and grab a larger slice of the competitive takaful market.
May 31, 2010

Saturday, 5 June 2010

News Posts 20100524-20100530

Insurance News ING is targeting >RM500 mil NB premiums in 2010, 25% higher than RM433 mil achieved in 2009 (RM375 mil in 2008). NB premiums for Q1 rose by 13%. The 25% growth target would be achieved by growing agency force from current 10,000 to 15,000 this year and capitalising on group insurance and bancassurance. ING is not on a shopping spree on M&A but is in fact in consolidation mode. A new product INGeasi for Health would be launched in July and expect to attract RM50 mil to RM60 mil premiums.
KUALA LUMPUR: ING Insurance Bhd, which is projecting more than 25% in new business premiums this year, is unperturbed by the ongoing merger talks between Prudential Plc and American International Assurance (AIA), saying it will not derail the company’s growth over the next few years.
May 29, 2010

Insurance News Prudential is trying to negotiate down the price of acquiring AIA from US$35.5 mil to US$30 mil. A cheaper price will help Prudential in getting 75% "yes" votes from its shareholders on 7 June. Would AIA be willing to lower the price or would it rather revive the IPO plan? Failing to get a lower price, would Prudential still get 75% "yes" votes? Do you prefer to see the deal goes through or falls apart? Things are definitely getting more interesting.
LONDON: Prudential is trying to salvage its US$35.5 billion (US$1 = RM3.31) bid to buy AIG's Asian life insurance unit by negotiating a price cut in a last-ditch attempt to prevent the deal from collapsing...
May 29, 2010

Insurance News Allianz General recorded a 29% increase in gross written premium in Q1 2010 compared to the same period in 2009. Meanwhile Allianz Life's new business premiums increased 26%. Profits for Life and General increased 27%.
Allianz 2010 Q1 Performance
May 27, 2010

Insurance News The Institute of Actuaries and Faculty of Actuaries will merge after more than 82% of the membership voted in favour of the merger. An attempt in July 2009 to merge the 2 organisations failed when it failed to secure the minimum 75% favourable votes. Changes were since made to the merger proposal. The merged entity will be named the Institute and Faculty of Actuaries. Presumably the fellows of the new organisation will carry the title FIFA?
The UK actuarial profession last night voted with a resounding majority to merge the London-based Institute of Actuaries and the Edinburgh-based Faculty of Actuaries. The new body, to be called the Institute ...
May 27, 2010

Insurance News In Jerneh Asia AGM yesterday, no new information was shared on who Jerneh's acquirer is going to be.
KUALA LUMPUR: Jerneh Asia Bhd is in talks with several potential buyers for the sale of its stake in Jerneh Insurance (M) Bhd, said chairman Datuk Lim Chee Wah.
May 26, 2010

Insurance News Prudential's NB APE for Q1 2010 was RM191 mil (conventional & takaful combined), an increase of 55% compared to RM123 mil in Q1 2009. PRUmy child roped in RM5 mil in 1 month.
PRUDENTIAL Assurance Malaysia Bhd (PAMB)'s new business or annual premium equivalent, comprising retail life insurance sales and Takaful, increased to RM191 million for the first quarter ended March 31, ...
May 26, 2010

Insurance News AIA's chief executive Mark Wilson is likely to quit if Prudential succeeds in acquiring AIA. He has apparently said that the proposed takeover is a "disaster waiting to happen".
HONG KONG: Prudential chairman Harvey McGrath yesterday defended a planned takeover of Asian insurer AIA as the British company's shares started trading in Hong Kong and Singapore to help fund the mega-deal...
May 26, 2010

Insurance News BNM is expected to announce the successful applicants for the 2 new takaful licences in June. Lets have some fun, submit your 2 guesses below and in June we will announce the name of the person who guesses both answers right first.
Up to two new takaful licences will also be announced. ING, Allianz, Manulife, Great Eastern and AmAssurance are some of the insurers believed to have submitted their applications. An industry observer felt Great Eastern might be one of the successful applicants for the takaful licence.
May 24, 2010

Insurance News Prudential's shares will starting trading on Singapore stock exchange today.
Prudential said it has received regulatory approval to start trading its shares on the Singapore Exchange on Tuesday. The counter will trade under the name 'Pru 500 US dollars' and the abbreviated name 'Pru 500.'
May 24, 2010