Manulife names new CEO

Manulife Insurance Bhd has promoted Kevin McWhinney as its new CEO. Prior to his promotion, Kevin was the EVP of Distribution since January 2006.

Source: Business Times

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

AmAssurance Surrenders Composite Licence

AmAssurance will surrender its composite insurance licence from 1 December 2008 with creation of 2 separate entities: AmLife Insurance Berhad and AmG Insurance Berhad carrying out life insurance and general insurance respectively. AMAB Holdings Sdn Bhd is the new holding company for these 2 entities.

Meanwhile IAG will increase its holding in AmG from 30% to 49% and dispose off its 30% holding in AmLife to Friends Provident. The transaction prices are:

• 19% of AmG: RM141 mil
• 30% of AmLife: RM170 mil

Source: Bursa Malaysia

Kurnia's 2009 Q1 Results

Kurnia reported a mixed 2009 Q1 (30/9/2008) results, while the overall results have deteriorated, the underwriting performance has improved. Below are the 2009 Q1 vs 2008 Q1 figures:

• GI Revenue: RM304.5 mil vs RM290.2 mil
• Motor gross premium: RM236.2 mil vs RM238.2 mil
• Miscellaneous gross premium: RM31.7 mil vs RM18.1 mil
• Profit: -RM12.1 mil vs RM14.4 mil
• Underwriting surplus: RM2.7 mil vs -RM323.7 mil (2008 Q4)
• Investment activities: -RM8.0 mil vs RM34.9 mil
• Claims ratio: 68.0% vs 75.4%

Source: Bursa Malaysia

Hannover Re's Staff Died in Mumbai Attack

Hema Kasipillay, a Hannover Re's underwriter based in Kuala Lumpur, who had been missing since terrorists stormed the Taj Mahal Palace and Tower Hotel on Wednesday night, has been found dead in her room on level six of the hotel.

The postmortem revealed that she had died of smoke inhalation. Hema was in Mumbai to attend a conference. She was with 2 German colleagues who were evacuated. One was holed up in his hotel room for 13 hours before being rescued. The other one was at the business centre on the ground floor and was rescued after 6 hours.

It was Hema's 1st official trip to Mumbai. According to Ravinder Singh, Hannover Re's Deputy General Manager for South and South East Asia, he was in contact with Hema thru text messages for several minutes after the gunmen stormed the hotel. The line was cut off subsequently.

Source: The Star, iReport

ING registered strong growth

ING has registered 37% growth in new business weighted premium in 2008, contributed strongly by its single premium business, presumably as a result of bancassurance tie-up with Public Bank.

ING's other business targets and performance:

• Pre-tax profit target for 2008: RM277 mil (2007: RM286 mil)
• 11.3% market share up to Q2 2008, 3rd largest
• 43.6% market share in group business and employee benefits
• Premium target for 2008: RM770 mil
• May partner an existing local takaful player
• Possibility of "right-sizing" support functions to save costs

Source: Business Times 1 & 2, The Star

MNRB posts poor Q2 results

MNRB has reported a net loss of RM13.3 mil in Q2 or RM7.55 mil loss in H1 on higher revenue. Reasons of the poor performance are:

• Higher reinsurance claims due to disasters: heavy snowstorm and earthquake in China, floods in Jakarta, cyclone in Myanmar and storms in Europe
• Additional provision for diminution of investments in quoted securities

MNRB also dismissed rumours that its wholly-owned Takaful Ikhlas has attracted bids from three companies, as reported by the Malaysian Reserve.

Meanwhile, Takaful Ikhlas continues to deliver strong results with a net profit of RM6.35 mil, up from RM2.67 mil.

Source: The Star, Business Times

Kurnia to reduce reliance on motor insurance

Kurnia targets to reduce its reliance on motor insurance business. Motor insurance business currently contributes 84% of it gross premium income, the target is to reduce it to 50%.

Yesterday, Kurnia also re-launched its enhanced Kurnia Auto Assist (roadside breakdown repair, 30 minutes arrival at scene) and Kurnia Express (immediate settlement of claims of comprehensive motor policyholders up to RM3,000).

Source: Business Times

Reasons for Pru's Double-Digit Growth

Prudential enjoyed a double-digit growth in total new business premiums for the 1st 9 months of 2008 compared with the corresponding period in 2007. The reasons cited by Prudential are:

• Transformation of agency force to wealth planners
• Leveraging on technology, especially PRUway, a point-of-sales system
• Aggressive branding: "The Face You Can Trust"

Source: The Star

Agents see opportunities in times of crisis

Opportunities are aplenty even during times of crisis. The top agents of Hong Leong Assurance Berhad (HLA) certainly of no doubt about this. Some of the opportunities mentioned and some food for thought for aspiring agents out there:

• Protection is paramount in times of crisis
• Economic downturn is only temporary, financial planning is long-term
• Good time to recruit top-quality agents especially those who are retrenched or can't find a job

Source: The Star

Allianz pulls out from proposed acquisition of Tahan

Allianz announced that it has decided to discontinue the discussion and negotiation with Idaman Unggul Berhad on the proposed acquisition of Tahan Insurance Malaysia Berhad.

Source: Bursa

CIMB Aviva pulls out of most general insurance business lines

CIMB Aviva Takaful Bhd is pulling out of all motor and commercial lines business and will focus on personal accident and retail fire only, the 2 lines of business that have higher profit margin. For existing policies, the coverage will be provided until end of the contract period and presumably it will not be renewed thereafter.

The company also offers VSS and 200 out of 550 employees have accepted the offer.

Source: Business Times

Foreign parties interested in stake in Takaful Ikhlas

The Malaysian Reserve reported that 3 international insurers and an international bank are interested in acquiring a stake in Takaful Ikhlas. However, MNRB has not made a decision on the sale of a stake in Takaful Ikhlas yet. Takaful Ikhlas is looking for a foreign partner that can help it to expand overseas.

Source: Reuters

FRS 4 to take effect from Jan 2010

MASB today issued 3 new financial reporting standards (FRS) and 2 interpretations relating to financial instruments.

Among which, FRS 4 Insurance Contracts would be of interest to the insurance industry. FRS 7 Financial Instruments Disclosures would be relevant as well.

FRS 4 and FRS 7 will take effect from January 2010.

Source: The Star, MASB