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Sunday, 29 August 2010

News Post 20100823-20100829

Insurance News The transfer of MaybanLife business to Etiqa will complete by 6/2011. The number of life insurers will reduce from 16 to 15. Etiqa achieved a 29% growth in pre-tax profit; family takaful new business business contributed 45.9% of total contributions and general takaful grew 16.1%.
Etiqa Insurance Bhd and Etiqa Takaful Bhd, under the brand name "Etiqa", recorded an increase of 29 per in pre-tax profit in the financial year ended June 30, 2010 to RM422 million from RM327.75 million the previous year.
August 27, 2010

Insurance News Pacificmas has selected Fairfax Asia to enter into agreement on the disposal of Pacific Insurance. It has therefore discontinued negotiation with Great Eastern on the same disposal.
On behalf of the Board of Directors of PacificMas, AmInvestment Bank Berhad (a member of AmInvestment Bank Group) wishes to announce that, PacificMas has, on 27 August 2010, informed Great Eastern Group (“GE”) of its intention to discontinue negotiation with GE on the proposed disposal of the entire equity interest in The Pacific Insurance Berhad, a wholly-owned subsidiary of PacificMas ("Proposed Disposal").
August 27, 2010

Insurance News Life insurance industry new business premium grew 24% on weighted premium basis in 2010 1H.
2010Q2 NB
August 27, 2010

Insurance News AIA's IPO, the largest-ever IPO in HK, is likely to be in Q4 2010. Given the tight schedule, it is unlikely for a strategic investor to emerge, as there will not be sufficient time for proper due diligence and negotiation of price.
AIA HK HONG KONG: American International Group Inc (AIG) is expected to decide by early next week whether to enter into formal negotiations with strategic investors for its Asian life insurance business, AIA, according to sources familiar with the process.
August 26, 2010

Insurance News Insurance companies better be more vigilant in handling customers' data following the record penalty handed out by FSA in UK. This is especially so with the Personal Data Protection Bill 2009 recently passed by Parliament in April this year.
Zurich Insurance Plc (Zurich UK) has been fined £2,275,000 by the Financial Services Authority (FSA) for having inadequate systems and controls in place to safeguard customers’ confidential information.
August 25, 2010

Friday, 27 August 2010

News Post 20100816-20100822

Insurance News HLTMT's Tune Raya Takaful sold through Tune Money has acquired 1,041 customers, with another month or so to go to hit the target of 4,000 to 5,000 clients. 2 new family takaful products are planned for mid-October launch with strategic partners.
HONG Leong Tokio Marine Takaful (HLTM Takaful), in cooperation with strategic partners, will launch two new family takaful products by mid-October.
August 20, 2010

Insurance News AIA Singapore lost 700 agents in the past year and is trying to poach from rival insurers by offering 35% higher earnings to agents. MAS has however issued a warning that it will take action to stop aggressive poaching activities.
SINGAPORE: AIA which is working on a listing of its shares in Hong Kong, has lost about 700 agents in Singapore in the past year and is trying to poach from rival insurers, the Straits Times newspaper reported.
August 19, 2010

Insurance News Prudential's APE for traditional and takaful sales grew 39% in 1H to reach RM395 mil this year compared with RM284 mil in 2009. Growth rates for Q1 and Q2 were 55% and 26% respectively.
KUALA LUMPUR: Prudential Assurance Malaysia Bhd's (PAMB) new business sales rose 39% year-on-year in the first half of 2010, driven by the launch of popular new products and higher agent productivity.
August 18, 2010

Insurance News Both Takaful Ikhlas and STMB refute talks of takeover of their companies by Etiqa. The rumuor of the takeover apparently stemmed from a misunderstanding on Etiqa's marketing/agency side. Meanwhile Takaful Ikhlas is still in search of a strategic partner that could help it do international business and provide strategic alliance overseas.
Syed Moheeb KUALA LUMPUR: Takaful Ikhlas Sdn Bhd president and chief executive officer Datuk Syed Moheeb Syed Kamarulzaman has dismissed market talk that Malayan Banking Bhd’s (Maybank) takaful unit Etiqa Takaful Bhd was planning to acquire the company as a rumour.
August 18, 2010

Insurance News A consortium consisting of China Life and ICBC plans to bid for a 30% stake in AIA, failing which they would shun AIA's IPO.
HONG KONG: A consortium of leading Chinese companies, including Industrial and Commercial Bank of China Ltd and China Life Insurance Co Ltd, plans to bid for a 30 per cent stake in American International Group Ltd's Asian life insurance business, AIA, the 21st Century Business Herald reported yesterday...
August 17, 2010

Insurance News OACM would pay RM15 mil to acquire Tahan. It plans to play a more significant role in the GI industry and maintains its current foreign shareholding structure. OAC's vision is to become the general insurer of choice in Malaysia.
Ng Keng Hooi PETALING JAYA: Bank Negara has approved the transfer of Tahan Insurance Malaysia’s general insurance business to Great Eastern Holdings’ Overseas Assurance Corp (Malaysia) Bhd (OACM).
August 17, 2010

Insurance News BNM has approved the transfer of Tahan's GI business to OACM. The transfer is expected to be completed in Q4 2010.
Bank Negara Malaysia has approved the scheme of transfer for the general insurance business of Tahan Insurance Malaysia Berhad (Tahan) to Overseas Assurance Corporation ( Malaysia ) Berhad (OACM) pursuant to the Insurance Act 1996. The transfer is the result of an open tender exercise that was conducted...
August 16, 2010

Insurance News MCIS Zurich is selling RM40 mil plus worth of properties, the proceeds are to be reinvested in REITs. The exercise is expected to enhance the investment yield.
MCIS-ZURICH Insurance Bhd is selling properties worth over RM40 million, that will be reinvested predominantly into listed real estate investment trusts (REITs).
August 16, 2010

Sunday, 15 August 2010

News Posts 20100809-20100815

Insurance News Etiqa Takaful's 2009/10 financial performance: Profit before tax grew 18% to RM107 mil; Total contributions grew 32% to RM2.4 bil; Total assets grew 16%; Family takaful grew 30%; General takaful grew 40%; Market share 44%.
Etiqa Takaful Bhd grew its total premium by 32 per cent for the 2009/2010 financial year to RM2.4 billion, thanks to strong performance across all business channels and innovation in business operations and processes.
August 14, 2010

Insurance News China Life and 2 other Chinese companies may shun AIA IPO on concerns that the IPO may be overpriced.
SHANGHAI: China Life and two other Chinese companies may not proceed with bids for stakes in American International Group’s Asian unit AIA ahead of the unit’s planned initial public offering (IPO), a newspaper reported yesterday.
August 14, 2010

Insurance News MAA teams up with Pos Malaysia to launch "Pos Raya Insurance". Earlier last month, HLTMT also launched a Raya PA scheme with Tune Money. Which one do you think will be more successful?
Pos Malaysia Bhd today launched "Pos Raya Insurance", an affordable personal insurance scheme in conjunction with the Hari Raya festive celebration.
August 13, 2010

Insurance News Ahead of its IPO, AIA has apparently commenced talks with potential cornerstone investors including Temasek, China Investment Corp and Abu Dhabi Investment Authority. The listing is targeted for Q4 2010 and expected to raise US$15 bil.
HONG KONG: American International Group Inc has started talks with potential investors to sell stakes in its Asian life insurance business AIA ahead of AIA’s planned initial public offering (IPO), according to sources with direct knowledge of the matter.
August 13, 2010

Insurance News Prudential has reduced the cost of its failed bid for AIA from £450 mil to £377 mil due to the reduced advisers fees and lower FX hedging costs. It has no plans for any other big takeovers and will focus on organic growth. The pressure for the resignation of Tidjane Thiam and Harvey McGrath has subsided.
LONDON/HONG KONG: Insurer Prudential said it had reduced the cost of its failed bid for AIG's Asian unit and confirmed it has no further appetite for M&A as it reported forecast-beating half-year profit.
August 13, 2010

Insurance News Prudential reported £1.68 bil EEV operating profit in 1H, up 35%, or £968 mil on IFRS basis (up 41%).
HONG KONG: Britain's largest insurer Prudential Plc reported a better-than-expected 34 percent rise in first-half operating profit, helped by improving investment returns amid a broader market recovery.
August 12, 2010

Insurance News Unidentified source said that BNM has given approval to P&O to proceed talk with Prudential on the acquisition of its general insurance business by Pru.
Malaysia’s central bank has given the nod for Prudential Holdings Ltd (P&O) to begin talks to buy a stake in insurer Pacific & Orient, a source with direct knowledge of the deal said on today.
August 12, 2010

Insurance News Great Eastern teams up with OCBC to launch a life insurance financing facility. Customers can take up a comprehensive life insurance policy with Great Eastern and finance the regular premiums through their home loan with OCBC.
Explaining the facility, he said LIF was designed for those who wish to take up a more comprehensive life insurance policy which goes beyond protection linked to the purchase of a home.
August 10, 2010

Insurance News Prudential is set to report its 1st half results this week. A good set of results may banish the memories of the failed takeover of AIA. However some said that it may not be enough to appease shareholders as good results are just like "putting cream on a spot of sunburn".
Investors are still smarting from the £450m bill for the failed AIA deal.
August 9, 2010

Sunday, 8 August 2010

News Post 20100802-20100808

Insurance News Analyst opines that Prudential's acquisition of P&O would create mutual synergies in the areas of brand name (Pru) and distribution network & niche client base (P&O).
PETALING JAYA: The potential merger between Pacific & Orient Insurance Co Bhd (P&O Insurance) and Prudential Holdings Ltd is likely to result in mutual synergies, analysts said.
August 5, 2010

Insurance News Jens Reisch is the new CEO for both Allianz Malaysia Bhd as well as Allianz Life.
Allianz Malaysia Bhd has appointed Jens Reisch as its new chief executive officer(CEO), effective tomorrow.
August 3, 2010

Insurance News G Team has made an unconditional takeover offer for the remaining shares in OCA. The offer ends on 23 August.
PETALING JAYA: G Team Resources & Holding Sdn Bhd yesterday issued an unconditional takeover offer to acquire all the remaining voting shares in Oriental Capital Assurance Bhd (OCA) it does not already own for a cash price of RM1.61 per share.
August 3, 2010

Sunday, 1 August 2010

News Posts 20100726-20100801

Insurance News Is it likely that Prudential will make it big in general insurance in Malaysia? Currently Prudential has less than 0.2% in premium income market share. P&O's market share is 3.5%, ranks just outside the top 10.
PETALING JAYA: Prudential UK is believed to have submitted an application to Bank Negara to commence talks on the potential acquisition of local general insurance company, Pacific & Orient Bhd (P&O).
July 31, 2010

Insurance News MAA has received extension of time from SC to complete the disposal of MAA's general insurance business to AmG.
Securities Commission had vide its letter dated 27 July 2010, granted MAAH an extension of time ...
July 31, 2010

Insurance News Car repair workshops threaten to use non-OEM parts if insurance companies impose more than 10% cut on repair claims.
PETALING JAYA: A feud between car repair workshops and insurance companies over repair costs is likely to jeopardise customers following a threat by workshops to use only non-original spare parts.
July 29, 2010

Insurance News Great Eastern's Q2 profits dived 24% from $97.7 mil to $74.4 mil due to poor investment performance.
The insurer racked up earnings of$74.4 million for the three months to June 30, compared with $97.7 million in the same period last year.
July 29, 2010

Insurance News Jerneh shares rose 13% today on high volume. Speculation is that the deal of disposing Jerneh Insurance is near conclusion. The identity of the buyer remains unknown.
KUALA LUMPUR: Shares of Jerneh Asia climbed on Wednesday, July 29 on market talk of a corporate deal involving its insurance business.
July 28, 2010

Insurance News PacificMas has informed Tokio Marine that it intended to discontinue the negotiation on the sale of Pacific Insurance to Tokio Marine Asia.
PETALING JAYA: PacificMas Bhd has decided to stop negotiating with Tokio Marine Asia Pte Ltd on the proposed disposal of its entire equity interest in wholly-owned subsidiary The Pacific Insurance Bhd.
July 27, 2010

Insurance News This is a good summary of proposed changes to FRS 139, handy for non-accountants in insurance industry: 1) Financial asset classification reduced to two: amortised cost and fair value 2) Fair value changes in equities need not be recognised in P&L but can be thru OCI 3) Moving from Incurred Loss Model to Expected Loss Model for loan-loss provisioning.
THE International Accounting Standards Board’s (IASB) new thinking on financial instruments accounting represents a big departure from the current FRS139/IAS39. Many entities may need to undertake another round of changes in systems and reporting to comply with the new IFRS9 requirements.
July 26, 2010