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Sunday, 13 June 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

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