Non-life merger in Japan

Japan's No. 2 (Mitsui Sumitomo), No. 4 (Aioi) and No.6 (Nissay Dowa) general insurance companies are in talks to merge. A basic agreement could be reached by March 2009, pathing the way for the formation of the largest non-life insurance company in Japan, surpassing No. 1 Tokio Marine.

Source: The Star

Writ of Seizure and Sales against HLA

Hytex Integrated Berhad has obtained a Writ of Seizure and Sales against Hong Leong Assurance. The claimable amount is RM30.4 mil plus 8% interest. The amount is for a disputed fire insurance claim.

Hytex is a sports goods manufacturer for international brands such as Nike and Puma.

Earlier it was reported elsewhere (not this blog) that the office of HLA was "seized and sealed" which was inaccurate.

Source: Bursa 1 & 2, Sinchew 1, 2, 3 & 4

News in Brief - Dec 23, 2008

1. Commerce Assurance Bhd's general insurance business will be transferred to Alllianz General Insurance Company (M) Bhd on 1 Jan 2009.
2. Manulife Asset Management (M) Sdn Bhd (MAMM), the asset management arm of Manulife Holdings Bhd, will launch 3 funds: equity, fixed income and syariah-compliant.
3. Mohd Fauzi Yaakub is the new CEO for Uni.Asia General Insurance Bhd. Fauzi became COO for the same company in April 2008.

Source: The Star 1 & 2, Business Times

PB-ING One Educate

ING has launched a new product named PB-ING One Educate to be distributed through Public Bank branches.

Product Features:

• Investment-linked education plan
• Monthly premium starts from RM175
• A monthly income of up to RM1,000 is payable over 5 years on untimely death of payor
• Entry age of life assured: 30 days to 15 years

Source: Business Times, The Star

PruBSN to open 7 new branches

Prudential BSN Takaful Bhd (PruBSN) will open 7 new branches in 2009 costing RM1 mil each. The branches will be located in state capitals.

Some business statistics:

• Total new regular contributions of RM340 mil (95% family takaful, 5% general takaful)
• 35% market share in NB growth
• 200 staff, 9,000 agents
• 70% agents non-Muslim
• 190,000 takaful participants (34% non-Muslim)

A new product called PruBSN ASAS will be launched in Q1 2009.

Source: Bernama

EON Bank Interested in Insurance Company

EON Bank targets to buy an insurance company by mid 2009. It is currently in discussion with at least 3 insurance companies on possibility of acquisition. One of which is Pacificmas.

Source: The Star

Pacificmas ceases negotiations with ACE

Pacificmas has ceased all negotiations with ACE Group of Companies including ACE Synergy Insurance Berhad in the proposed disposal of the entire issued and paid-up capital of The Pacific Insurance Berhad.

It is understood that Pacificmas is still in negotiations with 3 other parties.

Source: Bursa Malaysia

MSIG Keen on M&A

MSIG Insurance (M) Bhd is keen to pursue M&A strategy in Malaysia. The company acquired Aviva Insurance Bhd 2 years ago and does not rule out further acquisitions.

Other information on MSIG:

• No. 1 market share in marine cargo insurance (22.2%)
• No. 1 market share in Fire insurance (10.6%)
• Distribution channels: agency (35%), direct business (23%), motor business (14%), broker business (9%), bancassurance (7%)
• Gross premiums: RM710 mil (2007), RM702 mil (2006)

The current CEO, Song Yam Lim, will retire end of the year and Executive Director, Kenichi Fukuhara, will take over as the new CEO effective 1 Jan 2009.

Source: The Star

STMB is confident despite economic slowdown

Syarikat Takaful Malaysia Berhad (STMB) is confident that it will not be impacted by the economic slowdown because:

• Its service is of necessity and slowdown-proof
• It invests conservatively

For its latest 5-year capital protected product, Al-Afdhal, it is targeting contributions of RM100 mil. Distribution will be through agents as well as Bank Islam Malaysia Bhd, sister company of STMB.

Source: The Star

PRUmultiple Crisis Cover

Prudential launches it multiple crisis cover product this week and expects the plan to contribute 10% of its new business premiums by the end of next year.

Product Features:

• Multiple claims of up to 3 critical illnesses
• Coverage of 2 instances of cancer
• Protection against death and disability
• Premium is 20% higher than its conventional plans
• PRUwaiver can be attached to waive premiums on diagnosis of first critical illness
• Critical illnesses are categorised into 6 groups
• Once a claim is made from a particular group, the group is excluded from future claims

Source: The Star

STMB Launches Wakalah-Based Products

Syarikat Takaful Malaysia Berhad (STMB) launched 4 wakalah-based products yesterday: Takaful MyMedicare, MySiswa, MyImpian and MySinar. STMB is moving from mudharabah to wakalah model to be more competitive. The company is also planning to launch 4 more wakalah-based products next year.

Other news on STMB:

• Its unit in Indonesia PT Syarikat Takaful is seeking a strategic banking partner to take up a 30% equity stake by end-2009
• BNM has approved the injection of capital of RM21.825 mil into PT Asuransi Takaful Keluarga to address the minimum solvency ratio requirement deficit under the RBC framework of Indonesia

Source: The Star, Bursa, Business Times

Ng Keng Hooi Joins Great Eastern

Prudential's former chairman for Malaysia Ng Keng Hooi has taken up a new role in Great Eastern Singapore as the group CEO effective 1 December 2008. He took over from Tan Beng Lee, 65, who retired recently.

Source: The Star