Insurance News
Brief insurance news and digest for the busy executives. A handy insurance news archive with main focus on Malaysia. Disclaimer: While all attempts are made to ensure the accuracy of the news herein, we will not be liable for any loss arising from the use of any information contained in this blog. You may reproduce materials published here provided the source (news.actuaries.com.my) is properly acknowledged.
Insurance Job Advertisements
Sunday, 2 May 2010
News Posts 20100425-20100501
Insurance News South Korean competition regulator has given the green light to Prudential to acquire AIA. It remains to see if Vietnamese authority would block the deal due to anti-trust. See our earlier post for background of this story.
May 1, 2010
Insurance News MAA has received approval from BNM to take the necessary measures to meet the minimum CAR under RBC. This includes potential sale of MAA within 12 months from approval of BNM.
April 29, 2010
Insurance News Tan Liling has been appointed COO for Prudential. She was previously CFO of HLA and ING.
April 29, 2010
Insurance News With the commission ban on financial advice, the number of financial advisers in Australia is expected to reduce and the advisers will need to work harder. Financial advisers are however projected to earn more.
April 28, 2010
Insurance News It is interesting to note that in UK, the entry age for Term Assurance is as high as 83 and for critical illness it is 74. In Malaysia, for most companies the corresponding figures are 65 and 60. Plenty of room to improve. But of course is there a strong demand at these ages given the relatively younger population here?
April 28, 2010
Insurance News The integration exercise post Pru-AIA merger would be challenging with the rivalry of both camps. An exodus of senior executives is not ruled out post merger.
April 27, 2010
Insurance News Prudential's largest shareholder Capital Research & Management may not be supportive of the AIA deal and may prefer the break-up of Prudential which will bring more value. The rights issue requires 75% of the votes and may not be approved without the support of Capital.
April 27, 2010
Insurance News Financial advisers in Australia will not be allowed to receive commissions in future to avoid conflicts of interest. The commission ban applies to retail investment products but does not cover risk products.
April 27, 2010
Insurance News BNM's proposed TPBID has received many complaints. http://bit.ly/9jTu40 BNM will assess the feedback. The revamped plan is targeted to be finalised by Q3 this year.
April 27, 2010
Insurance News AirAsia has obtained licence to carry out captive insurance in Labuan. This provides flexibility in managing and retaining its risks in aviation, maritime and liability, which should result in lower costs to AirAsia.
April 27, 2010
Insurance News Allianz's RM611 mil rights issue is to repay RM490 mil credit facility obtained in 2007 to purchase Commerce Assurance, to increase capital in Allianz Life and Allianz General and for the purpose of working capital. The share price of Allianz fell after the announcement of rights issue.
April 27, 2010
Labels: AIA/AIG, Allianz, Executive Movement, Financial Advisors, MAA, Merger, Prudential, TPBID
Sunday, 25 April 2010
News Posts 20100418-20100424
Insurance News While emphasis will still be on Malaysia market due to constraints in resources, Takaful Ikhlas is exploring 3 overseas markets including Indonesia. The other 2 countries were not disclosed but they would be outside Asia and the Gulf region. Where could these be? Any guesses? http://bit.ly/a9eoz7
April 23, 2010
Insurance News Takaful industry sees entrance of more non-bumiputra agents due to factors such as: (1) The introduction of Takaful Basic Examination to enhance knowledge of non-bumi agents on takaful (2) Takaful operators promoting "takaful for all" concept, targeting both muslim and non-muslim customers (3) New takaful players tapping on the non-bumi agents of their conventional business http://bit.ly/cOMWLA
April 23, 2010
Insurance News It is confirmed that Prudential is seeking to list in both HK and Singapore. The target date is 11 May. http://bit.ly/bdiQG6
April 23, 2010
Insurance News Takaful Ikhlas aims to increase its contributions from Sarawak operations from RM18 to RM25 mil. http://bit.ly/alKSrf
April 23, 2010
Insurance News The 2009 Annual Insurance Statistics was released by BNM 2 days ago. You could find it here --> http://bit.ly/aaKVFe
April 23, 2010
Insurance News Now everyone has a chance to provide views and suggestions on TPBID. BNM has released details on the TPBID scheme and called for public feedback to be sent to BNM by 14/5/2010. http://bit.ly/9jfbRn
April 23, 2010
Insurance News The talk now is Prudential may be seeking a secondary listing on the Singapore Stock Exchange. The listing on HK Exchange apparently has also been approved. http://bit.ly/bWiM4O
April 23, 2010
Insurance News Prudential may be listed on HK Exchange as early as 1st week of May. The exchange officials apparently met with Pru on Wednesday. http://bit.ly/9I8OlS
April 22, 2010
Insurance News Bar Council called BNM's proposed TPBID as "one of the most drastic and evil schemes". Among its objections include the RM2 mil cap, which it claimed could only cover 90% of the claims, short of 100% it wanted to see; and the set up of Newco which would burden the public due to major shareholding by government. Bar Council also called for a cross-industry working committee to review public feedback and to propose holistic solution with public interest in mind. http://bit.ly/apYtgE http://bit.ly/cmQZH0
April 22, 2010
Insurance News For completeness, here are some more links on TPBID: The Star: http://bit.ly/ct40cv Business Times: http://bit.ly/9ZQLjl
April 21, 2010
Insurance News Etiqa is recruiting agents by targeting visitors to Unit Trust Week 2010. The insurer currently has >18,000 agents, one of the largest in the country. http://bit.ly/9Dcmi6
April 21, 2010
Insurance News After talking to so many other parties on the sale of Pacific Insurance without any positive results, PacificMas is finally talking to a closer cousin - Great Eastern. http://bit.ly/cw6Fk4 OCBC was given until 17/10/2010 to resolve holding 2 GI licences in OACM and Pacific Insurance. Earlier news on Pacific Insurance can be found here: http://www.actuaries.com.my/news/labels/Pacific%20Insurance.html
April 21, 2010
Insurance News The Australian Competition and Consumer Commission has blocked National Australia Bank from bidding for AXA Asia Pacific Holdings as the takeover would hurt competition for retail investors by reducing the number of retail investment platforms in the market. http://bit.ly/9r78UG Meanwhile regulators in South Korea and Vietnam are studying the competitive impact following the proposed merger of Prudential and AIA. http://nyti.ms/9HCjFw
April 20, 2010
Insurance News This is the news article published this morning in newspaper before BNM's announcement on TPBID. Someone involved in the TPBID discussion must have leaked it to the papers because whatever published in the article are similar/same as BNM's announcement. http://bit.ly/9duDAI
April 20, 2010
Insurance News BNM unveiled the proposed plan for TPBID. Some key features: (1) A newco to be set up, jointly owned by government & the industry (2) Covers both TPBID and 3rd party property damage (3) Claims may be capped at RM2 mil per life/injured person, RM2 mil figure is not finalised yet (4) 2 scenarios are being evaluated: (a) payment based on fixed scale, limited legal recourse, premium may be same as current (b) payment based on injury/death, full access to courts, premium higher than current. http://bit.ly/9PGzUq
April 20, 2010
Insurance News BNM has identified low investment yields as a near-term challenge to the industry and it is important for the industry to go back to basics to ensure sound underwriting. http://bit.ly/awvDfQ
April 19, 2010
Insurance News In addition to HSBC, speculation is that other possible suitors for Jerneh are Generali and Samsung Fire and Marine. http://bit.ly/cTSrTU
April 19, 2010
Insurance News AXA Affin will focus on conventional business and building distribution channels for the time being and may move into takaful in 2 years' time. AXA Affin currently ranks 16 out of 16 in market share and expects to move up 2 or 3 notches by 2nd quarter this year, banking on AXA group's standardised blueprint. http://bit.ly/atoUMF
April 19, 2010
Insurance News Prudential will not cut the purchase price of AIA even though there were some questions raised earlier by shareholders on the justifications of the offer price. http://bit.ly/9nY6s3
April 18, 2010
Labels: AIA/AIG, AXA Affin, BNM, Etiqa, Great Eastern, HSBC, Jerneh, Merger, OAC, Pacific Insurance, Prudential, Takaful Ikhlas, Takaful Malaysia, TPBID
Sunday, 18 April 2010
News Posts 20100411-20100417
Insurance News It would be interesting to see what solution/proposal BNM comes up with on TPBID Tuesday next week. So far the unofficial sources seem to think that the scheme will have a cap of RM2 mil, claims to be settled within 1 month and an increase in premium. For compilation of earlier posts on TPBID, visit: http://bit.ly/at9Ont
April 17, 2010
Insurance News With the takeover of AIA, Prudential is targeting 1 million agents in Asia. Currently Prudential has 400,000 agents, AIA has 300,000, the combined entity would need another 300,000 agents. Barry Stowe, the chief executive of Prudential Asia, who joined Prudential from AIG in 2006, when asked about earlier speculation that he would lead the integration, said: "What the hell makes anyone think that I would run the integration? I’m the chief executive of Asia; integration is a completely different animal."
April 15, 2010
Insurance News ISM released the GI industry report card which showed that the industry underperformed in 2009 compared with 2008. The industry is expected to grow 9-11% in 2010, consolidation is expected in the industry with 25 players remaining in conventional GI market. Combined ratio for motor business hit 112% in 2009. http://bit.ly/aMhjhM, http://bit.ly/al1ROM

Insurance News Prudential has assigned its CEO for UK and European operations to lead the Asia Prudential-AIA integration. This has sparked speculation that eventually the UK operations of Prudential will be sold off.
April 14, 2010
Insurance News Saudi Arabia has the highest takaful market share in the whole world in 2008 with US$2.9 bil contributions, Malaysia was 2nd with US$0.9 bil. The total world takaful contributions is expected to hit US$8.8 bil this year. Generating profit is seen as challenging for the industry.
April 13, 2010
Insurance News MSIG now provides professional liability insurance of up to RM500k to Traditional Chinese Medicine practitioners. Annual premium starts from RM388; entry ages: 21 to 70; renewable up to age 80. Cross-border cover can be taken by paying additional premium.
April 13, 2010
Insurance News Using server to process data is said to be no longer effective. Comes grid computing which claims to be able to reduce time required for actuarial calculations by 97%.
April 12, 2010
Insurance News HSBC may be the buyer of Jerneh Insurance, according to an article in Singapore newspaper. The company is valued at RM700 mil according to the same source.
April 12, 2010
Labels: AIA/AIG, BNM, HSBC, ISM, Jerneh, Merger, MSIG, Prudential, Takaful, TPBID
Sunday, 28 March 2010
News Digest 20100321-20100327
Click here for news digest.
Labels: AIA/AIG, Allianz, BNM, Merger, Motor Insurance, Prudential, TM Asia, Tokio Marine
Sunday, 21 March 2010
News Digest 20100309-20100320
Click here for the news digest.
Labels: Accounting, AIA/AIG, Allianz, AmAssurance, BNM, Kurnia, Merger, Motor Insurance, Products, Prudential, Retirement, Takaful Ikhlas, Takaful Malaysia, Tokio Marine
Tuesday, 9 March 2010
News Digest 20100301-20100309
Click this link for the news digest.
Labels: AIA/AIG, AXA Affin, Bancassurance, Merger, Motor Insurance, Prudential, Takaful, Takaful Malaysia, TM Asia
Monday, 1 March 2010
News Digest 20100223-20100301
Click this link for the news digest.
Labels: AIA/AIG, Allianz, ASM, AXA Affin, BH Insurance, BNM, Financial Advisors, Manulife, Merger, Motor Insurance, Prudential, RBC, Takaful Ikhlas, Takaful Malaysia
Saturday, 16 January 2010
News Digest 20100110-20100116
Insurance News It is TM Asia's turn to say that they want to double their premiums, but this time it seems to be a target set for only Sabah or the most for East Malaysia. The company also wants to be 1 of the top 5 in 2 to 3 years' time mainly through its agency force. http://bit.ly/6BDdfE
TM Asia Life aims to double premium
TM Asia Life Malaysia Bhd, which has embarked on an expansion plan in East Malaysia, hopes to double new business premium with the opening of its new premises in Kota Kinabalu. The company, with a strong ...
Insurance News Vincent Kwo is now COO for MAA. http://bit.ly/8O41Hb
MAA appoints chief operating officer
MALAYSIAN Assurance Alliance Bhd (MAA) has appointed Vincent Kwo Shih Kang as chief operating officer from January 2. Kwo, 49, graduated from City University, London, in 1982 where he obtained a Degree ...
Insurance News AXA Affin does not rule out acquisition to achieve its 8% market share target. Our view is that this may in fact be a more feasible route given that doubling the premiums every year is not an easy task at all. Perhaps AXA should explore with UOB and see whether the latter has intention to sell its insurance units in Malaysia? http://bit.ly/6dFGcH
AXA Affin not ruling out acquisitions, partnerships
AXA Affin Life Insurance Bhd hopes to grow its share of the local life insurance market from 1.5 per cent to 8 per cent by 2012, as it undertakes a AXA global branding exercise.Its chief executive officer ...
Insurance News It is unusual to have an Islamic bank that doesn't have any takaful operations to comment on takaful. OCBC Al-Amin commented that the growth of takaful lagged behind Islamic banking. Great Eastern, which is owned by OCBC, is believed to have applied for 1 of the 2 new takaful licences to be issued this year. GE has also recruited the ex-CEO of Prudential BSN to enhance its chance of getting the new licence. http://bit.ly/6hKEVH
Malaysian takaful growth lags banks
Growth in Malaysia’s takaful Islamic insurance industry has lagged the sharia banking sector as insurers struggle to find a home for premiums and players lack distribution channels, Singapore’s ...
Insurance News AXA Afiin Life needs to double premiums to be top 5 player by year 2012. http://www.actuaries.com.my/news/2010/01/axa-affin-life-needs-to-double-premiums.html
Insurance News: AXA Affin Life needs to double premiums
www.actuaries.com.my
Axa Affin Life has a huge target to achieve by year 2012. It has to grow its market share from the current 1.5% to 8%, to be among the top 5 in the industry. Its NB premium was RM162 mil in 2009, the target set for 2010 is RM320 mil and RM100 mil for total premiums and weighted premiums respectively...
Insurance News Dedicated to all our readers who are insurance agents. http://www.youtube.com/watch?v=ysA-wtl8-YI&feature=autofb
Insurance agent - Bangkok Life advertisement
Bangkok Life Assurance advertisement
Insurance News CIMB Aviva Takaful launched EasyLife Takaful Series and expects to secure contributions of RM35-40 mil. The takaful player aims to increase its market share from the current 2-3% to 5% in 2 years time. There are currently 8 takaful players in the market with 2 new licences to be issued soon. http://bit.ly/6nmFtQ http://bit.ly/6p0TRW http://bit.ly/5Q3TlO
CIMB Aviva aims for 5pc market share
CIMB Aviva Takaful Bhd is looking to increase its market share to five per cent in two years in line with the steady growth of the takaful industry, chief executive officer Muhammad Fikri Mohamad Rawi ...
Insurance News CIMB Wealth Advisors which started distribution for AIA since March 2009 secured RM7.6 mil premium in 2009. It sets a target of RM25 mil for 2010 planning to tie up with more insurers after obtaining its financial advisor licence. http://bit.ly/6ceiyR
CIMB Wealth sees RM25m premiums
CIMB Wealth Advisors Bhd aims to secure RM25 million premium this year from insurance and takaful products, chief executive officer Tan Beng Wah said today.The company managed to secure RM7.6 million premium ...
Labels: Agents, AIA/AIG, AXA Affin, Business Targets, CIMB Aviva, Executive Movement, Great Eastern, MAA, Products, Prudential BSN, Takaful, TM Asia, Uni.Asia
Wednesday, 13 January 2010
News Digest 20100106-20100113
Click this link for the news digest.
Labels: Agents, AIA/AIG, AXA Affin, CIMB Aviva, Executive Movement, Kurnia, Manulife, Merger, Uni.Asia
Wednesday, 6 January 2010
News Digest 20091116-20100106
Click this link for the news digest.
Labels: Actuary, AIA/AIG, Allianz, AmAssurance, BNM, Great Eastern, HSBC, Jerneh, Kurnia, LIAM, MAA, Manulife, MCIS, Merger, MNRB, MSIG, Prudential, Tahan, Takaful Malaysia, Uni.Asia
Thursday, 10 December 2009
AIG is now Chartis
AIG General Insurance (M) Bhd is now called Chartis Malaysia Insurance Bhd.
Chartis' strategies and targets:
- 7.5% gross premium growth for 2010
- Higher contributions from aviation and household contents
- 4 new branches: Klang, Sungai Petani, Seremban and 1 in East Coast
- Increase agency force from 2,800 to 3,000
- Fire insurance: focus on SMEs
- Expands regional processing centre in Technology Park
Source: The Star
Labels: AIA/AIG, Business Targets
Saturday, 26 September 2009
Aviva looks to expand into Indonesia
Aviva is not keen to acquire assets from AIG as the price is not attractive. Instead it is looking to expand into Indonesia. Integrating Aviva with AIA would also be tricky as Aviva uses bancassurance and independent financial advisers while AIA is agency dominant.
Source: Business Times
Wednesday, 22 July 2009
Second-round bidders for Nan Shan
The following are the bidders which have successfully moved into 2nd round in the bid for Nan Shan:- Carlyle
- Bain Capital / Chinatrust
- Primus Financial
- MBK Partners
- Fubon Financial Holding Co Ltd
Foreign bidders in 2nd round will have to form a consortiums with a local partner.
Earlier post: 10 bids for Nan Shan
Source: Business Times
Friday, 17 July 2009
Axa Affin Life to have a new CEO
Loke Kah Meng (pic) is tipped to be the next CEO of Axa Affin Life Insurance in Malaysia. He is due to report to work in early August.It is learned that Loke's physical last day with Great Eastern was yesterday.
Loke was the EVP of Customer Management and Chief Marketing Officer at Great Eastern. He was heavily involved in the Centennial Campaign at Great Eastern when Great Eastern celebrated its 100th year anniversary last year.
A Fellow of Society of Actuaries, Loke worked in AIA as appointed actuary and Manulife as CFO and appointed actuary prior to joining Great Eastern.
Source: TAS Blogger
Labels: Actuary, AIA/AIG, AXA Affin, CEO, Executive Movement, Great Eastern, Manulife
Monday, 6 July 2009
10 bids for Nan Shan
Nan Shan Life, the AIG owned insurance unit in Taiwan, has received 10 bids from various parties including:- Kohlberg Kravis Roberts
- MBK Partners
- Affinity Partners
- Cathay
- Chinatrust
- Fubon
- Ruentex
- Carlyle
- Primus Financial Holdings
The bids for Nan Shan range from US$1.7 bil to US$2.5 bil.
Source: Business Times
Wednesday, 17 June 2009
AEON to sell insurance policies
AEON plans to sell insurance policies through the internet and its service centres. The insurance policies will be sourced from:
- General insurance: AIG and ACE
- Life: AIA
AEON has 29 service centres in Malaysia.
Source: Business Times
AIA rebrands
AIA is distancing itself from AIG by embarking on a corporate rebranding exercise. The rebranding will cover the following countries:- Malaysia
- Singapore
- Indonesia
- Thailand
- Brunei
- Vietnam
- China
- Hong Kong
- South Korea
- Australia
Source: The Star
Labels: AIA/AIG
Thursday, 11 June 2009
PA for DiGi's customers
We first reported this story on 12/9/2008 when the PA was offered free.Now DiGi's customer base has grown from 5 mil to 7.2 mil. The PA is also purchasable for either RM50,000 or RM100,000 sum assured. The premium is RM2 and RM6 respectively for a 30-day coverage.
It is interesting to note that you have to pay 3 times as high a premium for only twice the SA. Wonder whether a lot of people will go for the higher plan except perhaps with the reason to anti-select against the insurer?
Source: Business Times
Labels: AIA/AIG
Tuesday, 9 June 2009
Aon the new MU shirt sponsor
Aon will replace AIG as the new shirt sponsor for Manchester United. The deal costs £20 million per year. AIG previously paid £14 million per year for the shirt sponsorship.
Source: Insurance Daily
Labels: AIA/AIG
Thursday, 4 June 2009
Nan Shan is now cheaper
Nan Shan Life, the insurer in Taiwan 95% owned by AIG is now cheaper by US$200 to 500 mil valued at US$1.8 to 2 bil. 3 parties have expressed interest:- Fubon
- China Life
- A global private equity firm
Source: Business Times
Tuesday, 19 May 2009
IPO of AIA
AIG after failing to sell AIA privately last year for up to US$20 bil is preparing to list AIA through an IPO in Hong Kong. The IPO targets to raise US$4 bil for 20% of stake in AIA.AIA is present in 13 Asian markets. More statistics on AIA.
Source: The Star
Monday, 18 May 2009
Fitch cut AIG's ratings
posted by Teh Loo Hai @ 12:38 PM 0 Comments Links to this postTuesday, 7 April 2009
Prudential buys over agents
Prudential Singapore is buying over agents from competitors by offering a 'buy-over' package. Prudential targets to recruit 2,000 agents this year, to grow its existing pool of 3,500 to 4,500 by end of the year.The 'buy-over' package consists of payment to new recruits an average of their past 2 years' income spread over the next 24 months, in addition to the commission of their new sales. The condition is the new recruits must sell as much as they have done over the past 2 years.
Other industry statistics:
- AIA: current agency force - 4,000, targets to recruit 1,000 this year
- Great Eastern: current agency force - 2,534, targets to recruit 60 to 80 per month
Source: Strait Times
Labels: Agents, AIA/AIG, Great Eastern, Prudential
Tuesday, 31 March 2009
CIMB Wealth Advisors ties up with AIA
CIMB Wealth Advisors signed a 10-year exclusive strategic alliance with AIA to offer AIA's products to the former's customers. The products include traditional life, investment-linked medical, education, endowment and takaful products from AIA Takaful International Bhd.Some facts on CIMB Wealth Advisors:
- Over 5,500 agents and financial planners
- 35 regional offices, branches and agency offices
CIMB Wealth Advisors is part of CIMB Group which has its own life insurance and takaful arms under the brand name of CIMB Aviva. It is interesting to note that with the exclusive alliance with AIA, it seems to mean that CIMB Aviva's products will not be sold by CIMB Wealth Advisors.
Source: CIMB Wealth Advisors
Labels: AIA/AIG, CIMB Aviva, CIMB Wealth Advisors
Monday, 30 March 2009
Edmund Tse retires
AIG's Edmund Tse is retiring after serving the firm for almost 50 years. Rodney O. Martin, Jr. will be appointed to the post of chairman of International Life and Retirement Services, and chairman of AIA and ALICO.Source: Insurance Daily
Labels: AIA/AIG, Executive Movement
Insurers to cut bonuses
Policyholders in Singapore can expect their bonuses on endowment and whole life policies to be cut following a dismal investment performance in 2008.
Company that have decided to cut: Great Eastern
Company yet to decide: AIA
Companies declined to comment: Prudential, NTUC Income, Manulife
Company not cutting: TM Asia
Source: Asiaone
Labels: AIA/AIG, Bonus, Great Eastern, Manulife, NTUC Income, Prudential, TM Asia
Tuesday, 10 March 2009
No plan to sell stake in AIG General
AIG General Insurance Bhd does not plan to sell a stake in the company and in fact is open to acquire other general insurers. However, the focus is for internal growth with objective of achieving 5% growth in 2009.Other statistics on the company:
- plan to double its size and profit by 2012
- 2008 gross written premiums: RM494.7 mil (30% motor, 20% PA/travel, rest: commercial lines)
- 2008 net profit: RM36.9 mil (14% lower compared with 2007)
- 2007 gross written premiums: RM442.6 mil
- Agency size: 2,500, 20% growth target in 2009
- Solvency ratio: 220%, paid-up capital: RM310 mil (RM220 mil in liquid assets and cash)
Source: Business Times
Labels: AIA/AIG, Business Targets, Merger
Monday, 9 March 2009
AIA to be split from AIG
AIA will be separated from AIG and put into a specially created separate legal entity, subject to regulatory approvals.In a move to convince policyholders, AIA announced that it had a solvency ratio on a pro forma basis of >200% of regulatory requirements as of 30/11/2008 and with A+ rating from S&P.
Other statistics on AIA across 13 Asian markets:
- >US$60 bil assets under management
- >250,000 agents, >52,000 agents recruited in 2008
- 20,000 employees
- 20 mil customers
Meanwhile, 2 bidders (Prudential and Manulife) for AIA bidded well below AIG's target of US$20 bil. AIG will consider an IPO.
Source: The Star
Labels: AIA/AIG, Manulife, Merger, Prudential, Rating
Thursday, 5 March 2009
Philamlife will not be sold separately
AIG has scrapped a separate sale of Philamlife and will make it part of AIA group. Presumably it will be sold together with the rest of the AIA group.Source: Bloomberg
Monday, 2 March 2009
AIA and RHB in bancassurance tie-up
AIA and RHB Bank have executed a term sheet to enter into a 10-year mutually exclusive bancassurance relationship in Malaysia. The products involved are individual and group conventional life insurance. The products could be sold through RHB branches, telemarketing, direct marketing and worksite marketing.Under the eventual agreement, AIA will pay RHB bank RM50 mil upfront. Takaful products may also be included in the product range, subject to a review by 15/12/2009. In the event that AIA is not able to add takaful products to the bancassurance product range, AIA will pay RM50 mil to RHB bank to enable the latter to source takaful products from another insurer or takaful operator.
Source: Bursa Malaysia
Labels: AIA/AIG, Bancassurance
Sunday, 1 March 2009
Update on Mergers
- China Life afterall is not bidding for AIA.
- Eon Bank said it was still in talks to buy stake in MCIS Zurich.
Source: Business Times
Friday, 27 February 2009
China Life has not pulled out from AIA's bid
China Life apparently has not pulled out from the bid for AIA, contrary to yesterday's report. CIRC's Vice Chairman said that China Life's discussions with AIG were ongoing, with no results yet.AIG and US authorities are also in advanced negotiations to divide the company into 3 divisions: AIG's Asian operations, AIG's international life insurance business and US personal lines, AIG Direct.
Source: Forbes
Thursday, 26 February 2009
Bid for AIA closes on Friday
The 1st round of bidding for AIG's business in Asia closes this Friday. Apparently there are 3 parties that are interested: Temasek, Manulife and Prudential. Bank of China and HSBC have apparently dropped out. It was reported that Prudential may not be able to meet the Friday deadline.AIG has also changed their mind and would now consider selling more than 49% of its stake in AIA, effectively surrendering the control to the successful bidder.
The whole stake of AIA is valued at US$20-30 bil.
Source: CNN Money, Reuters, The Star
Labels: AIA/AIG, Manulife, Merger, Prudential
Thursday, 19 February 2009
Shortlisted bidders for Philamlife
AIG has apparently shortlisted 4 potential buyers for Philamlife. The 4 bidders are:- Bank of the Philippine Islands (partners Prudential Plc)
- Banco de Oro Unibank (partners Assicurazioni Genrali SpA and Jerneh Asia Bhd)
- Manulife Financial Corp
- Unidentified
Source: The Star
Monday, 2 February 2009
Strategic investors for AIA Malaysia
AIG may seek strategic investors for its Malaysian life insurance unit. Prudential is monitoring AIG's disposal programme and is interested in China, Hong Kong, Japan and Malaysia.Source: Business Times
Labels: AIA/AIG, Merger, Prudential
Sunday, 16 November 2008
AIG Injects Capital into Nan Shan
AIG has injected US$1.36 bil in fresh capital into Nan Shan Life Insurance Co.We previously reported that AIG would sell stake in its 95% owned Nan Shan.
Source: CNN Money
Labels: AIA/AIG
Monday, 10 November 2008
AIG to sell Nan Shan
AIG is apparently renegotiating with the Government for a lower interest rate and possibly a higher loan package of $150 bil instead of $123 bil. The initial credit line by the Government has a 2-year term and an onerous interest rate above 10%.Meanwhile, it was also reported that AIG would sell stake in the 95% owned Taiwan's Nan Shan Life Insurance.
Source: The Star 1, The Star 2, Alibaba
Labels: AIA/AIG
Friday, 24 October 2008
No Bonuses for Some AIG's Executives
The executives of AIG Financial Products will not have their bonuses. AIG Financial Products was the particular business responsible for AIG's heavy losses, and the unit and its staff are now paying the price through the bonus freeze.
Source: Insurance Daily
Labels: AIA/AIG
Wednesday, 22 October 2008
ING Interested in AIG's Asian Businesses
More companies have expressed interest in buying AIG's Asian businesses. We reported previously that Tata Sons and Prudential were interested. The latest is India's Reliance Anil Dhirubhai Ambani Group (ADAG) and ING are eyeing AIG's Asian businesses as well.
Source: Insurance Daily
Monday, 20 October 2008
Prudential to acquire AIA?
Prudential apparently is in talks with investors in the Middle East and Asia to raise capital to buy parts of AIG's operations in Asia. It is estimated that this will cost US$15 bil.We reported earlier that AIG wanted to retain a majority interest in the AIA companies. If this is still the case, it would be very surprising for Prudential to take a minority stake. Prudential is already present in most markets along side with AIA, and most regulators will not allow a company to hold 2 insurance licences in the same market.
The remaining possibility is there is a change in mind in AIG, they may now want to sell off some AIA's units to repay the loan from the Fed. If this is the case and Prudential turns out to be the successful bidder, we will see Prudential replacing AIA as the largest insurance player in Asia.
Source: Telegraph
Labels: AIA/AIG, Merger, Prudential
Sunday, 19 October 2008
Tata Sons Interested in AIA
Tata Sons, the holding firm of India's 2nd largest conglomerate, is reported to be interested in acquiring a 49% stake in AIA. However, both Tata Sons and AIG have not provided confirmation on the M&A talks.Source: Business Times
Thursday, 9 October 2008
AIG Getting Another US$37.8 bil
AIG has requested another $37.8 bil loan from the Federal Reserve, in addition to the $85 bil loan facility from the central bank."The existing $85 billion New York Fed loan facility has been used, in part, to settle transactions with counterparties returning these third-party securities to AIG. This new program will allow AIG to replenish liquidity used in settling those transactions, while providing enhanced credit protection to the New York Fed and U.S. taxpayers in the form of a security interest in these securities", according to Federal Reserve.
Source: Insurance Daily, Federal Reserve
Labels: AIA/AIG
Wednesday, 8 October 2008
What Went Wrong with AIG?
Interesting findings from the probe into AIG's saga so far:- AIG's executives were sent on a $440,000 retreat to posh California resort, less than a week after the federal government bailed out the Group
- AIG executives hid the full range of its risky financial products from auditors as losses mounted
On what went wrong, you will hear Greenberg blaming his successors, and his successors in turn blaming mark-to-market accounting rules. Read for yourself the following 2 news articles which are similar, I think good risk management lessons can be learnt from there.
Labels: AIA/AIG, Risk Management
Tuesday, 7 October 2008
AIA's Next Generation Strategy
Targets:
- Doubling new business (NB) premiums over the next 3 years!
- Maintain at least 20% growth in NB premiums in 2008
Details of Next Generation Strategy:
- Inject "younger blood" into the group sales force to reach a younger group of customers (existing agency force: 9,000, target by November 2008: 10,000)
- Target 20 to 30-year-old age group customers
- Set up Next Generation Centres in Kuala Lumpur, Penang and Johor Baru (budget: RM8 to 10 mil for the 3 centres)
Source: The Star
Labels: AIA/AIG, Business Targets
Monday, 6 October 2008
Philamlife will be Sold
Philamlife (Phillippine American Life and General Insurance Co), the Phillippine unit of AIG is to be sold. Philamlife has been a leader in the industry for past 61 years.
Earlier, we reported 3 Japanese business units of AIG are to be sold as well.
Source: The Star
Labels: AIA/AIG
Minority Shareholders for AIA
AIA has decided that it would introduce minority strategic investors."AIG would retain a majority interest in the AIA companies but would seek out minority strategic investors that would ensure the AIA companies' ability to grow to their full potential in future years."
Source: The Star
Labels: AIA/AIG
Sunday, 5 October 2008
AIG to Sell 3 Life Businesses in Japan
AIG plans to sell its 3 life insurance businesses in Japan (American Life Insurance Co., AIG Star Life Insurance Co and AIG Edison Life Insurance Co) but to retain the property & casualty unit.The combined price for the sale could top $9.5 bil.
Source: Reuters
Wednesday, 1 October 2008
Which Regulator to be Blamed for AIG's Crisis
With AIG's crisis resulted in $85 bil federal bailout, who should be blamed, the state or federal regulators?Would the crisis have been avoided if the US adopts a centralised federal regulation?
What risk management lesson do we learn from here?
I suggest you read the source article and draw your own conclusions.
Labels: AIA/AIG, Risk Management
Plenty of Buyers for Philamlife
There is no shortage of buyers for AIG's unit in the Philippines: Philamlife. However, AIG has not decided whether it is selling the unit.Philamlife has interests in insurance, asset management, banking and outsourcing.
Source: Insurance Daily
Tuesday, 30 September 2008
What Will AIG Sell?
To repay the US$85 bil government loan quickly, what will AIG sell?There is no final decision yet but apparently the international life insurance unit and the US pension businessess will not go.
Source: The Star
Labels: AIA/AIG
Friday, 26 September 2008
Greenberg Plans to Sell AIG Stock
Maurice "Hank" Greenberg said he plans to sell shares of AIG for "liquidity and other purposes". He will sell the stock in the open market.Greenberg owns 10% of AIG and he plans to "decrease his holdings materially".
It is estimated that Greenberg's AIG shares have lost US$2.4 bil in value since October last year.
Source: The Star
Labels: AIA/AIG
Tuesday, 23 September 2008
Further Assurance from AIA
AIA's CEO in Malaysia has given further assurance on meeting commitments to policyholders and other financial obligations. The company is well-capitalised and has a substantial solvency margin surplus.Other notable facts:
- 60% increase in recruitment of agents in 1st 9 months of the year
- New business premium growth in 1st 6 months: 17% compared with industry 4.5%
Source: The Star
Labels: AIA/AIG
Munich Re Wants to Increase Rates
I need the assistance of our readers to help me in understanding this.Munich Re "sees opportunities to push through double-digit price increases following the rescue of American International Group (AIG) by the US government".
I do not know whether this applies to a specific class of reinsurance, and if so, which one.
For most other reinsurance classes such as Mortality, Critical Illnesses, Disability, Fire, Marine, Personal Accident, I do not see the justification of increase in reinsurance rates following the rescue of AIG by the US government.
Perhaps our readers who work in reinsurance company can help to explain?
Labels: AIA/AIG, Munich Re, Reinsurance
Monday, 22 September 2008
AIA's Takaful Licence is in International Currency Business
It is confirmed that AIA obtained the international takaful licence, not takaful licence to operate Ringgit business as claimed by the Edge Weekly.Under the licence, AIA Takaful International Bhd is allowed to offer family and general takaful and retakaful policies in international currencies.
Source: Business Times
Labels: AIA/AIG
Namlifa and MFPC Give their Assurance
Both Namlifa (The National Association of Malaysian Life Insurance and Financial Advisors) and MFPC (Malaysian Financial Planning Council) have given their assurance that the local insurance industry remains resilient.
They cited reasons such as stringent regulatory requirements, separate reserves and assets and separate structure between local subsidiary and parent company. Both are confident that the insurance companies would be able to fulfil obligations to policyholders.
Source: Business Times
Labels: AIA/AIG
Sunday, 21 September 2008
AIA Gets Takaful Licence?
The Edge Weekly (September 22, 2008, page 20) seems to think that AIA has obtained a takaful licence to operate Ringgit businesses. It claimed that AIA is 1 of the 9 takaful operators in Malaysia.
While to my knowledge it is true that there are 9 takaful operators in Malaysia, my list of 9 operators does not include AIA.
I understand that AIA has obtained a licence to do non-Ringgit takaful business quite some time back, has the Edge got mixed up?
Your comment is most welcomed.
Labels: AIA/AIG
Article in The Star on AIA Quite Damaging
I find this article in The Star by Danny Yap on AIA quite damaging.With due respect, the author may not understand well how insurance funds work. While a layman may have fear that the recent AIG's events may affect the security of their insurance policies, it is the responsibility of those (including reporters covering financial stories) who understand how insurance funds work to highlight the concept of separation of life funds and shareholders' fund.
For those who are not in insurance industry reading this post, briefly, insurance funds are created to hold policyholders' moneys and to meet liabilities to policyholders. Shareholders are not allowed to transfer money out of insurance funds unless there is a surplus in the fund and unless such transfer is recommended by the appointed actuary and approved by the Board. So even if shareholders run out of money, as long as insurance funds are solvent, policyholders should not be overly concerned that their policy liabilities will not be met. The rush to cash out their policies is therefore unneccessary.
A reporter would do a better job if he consults some experts in the industry before publishing an article purely highlighting one side of the story (in this case, highlighting the fear of those panic policyholders).
Labels: AIA/AIG
Friday, 19 September 2008
Articles on AIG - Part 3
More assurance from the company:AIG’s Malaysian unit unaffected
Business as usual for AIG Malaysia
Development in Thailand, Hong Kong, Singapore and India:
AIG injects 14b baht into Thai banking unit
I think this one falls into the must-read category:
Where AIG Went Wrong
Other articles:
Why AIG was saved
AIG's new chief plans to keep company in business
Pru and Avivia tipped to benefit from AIG sale
ETF working on AIG-linked funds’ revamp
Labels: AIA/AIG, Risk Management
Insurance Industry Exposure to AIG and Lehman
I will update this as and when more figures are released on the insurance industry exposure to Lehman and AIG.
Exposure to Lehman
Aegon: £211 million
Aetna: $132 million
Aviva: £270 million
Friends Provident: £18 million
Hannover Re: €23 million
Munich Re: €350 million
Swiss Re: $45 million
Exposure to AIG
Aetna: $102 million
Aviva: £148 million
Swiss Re: $178 million
Source: Insurance Daily, Courant.com
Labels: AIA/AIG, Risk Management
Mark O'Dell Resigned from AIA Singapore
Mark O'Dell resigned on Thursday from AIA Singapore. It is believed that he is joining Manulife, Taiwan as General Manager.
AIA said that Mark's resignation is not related to the recent events affecting AIA/AIG.
Source: Reuters
Labels: AIA/AIG, Executive Movement
Thursday, 18 September 2008
More Articles on AIG

AIA chief: It’s business as usual
AIA: Local ops strong, well capitalised
Insurer's roots run deep in Asia
Fed takes control of AIG in US$85b bailout
Citigroup sees AIG’s mark-to-market loss at US$20b
US stocks tumble after government bailout of AIG
Will AIG plan cost taxpayers money, or just sleep?
Short-term US Treasury demand soars after AIG bailout
Labels: AIA/AIG
Wednesday, 17 September 2008
News Articles on AIG
We have all been flooded with news articles on AIG in the last few days. These include AIG seeking financing from Fed, rating downgrade, assurance that liabilities in Singapore and Malaysia can be met etc.We provide the links below for those who want to find out more:
AIG plans US$20b asset selloff: Paper
AIG allowed to borrow from units, shares sink
AIG seeks US$40bil financing from Fed
Fitch downgrades AIG’s debt ratings
AIG seeks up to $75bn from Golman Sachs and JPMorgan
AIA Singapore can meet liabilities
Investors throng Singapore office of AIG unit
Group of AIG investors may come to the rescue
AIA: Turmoil in US will not hurt Malaysian ops
AP Sources: AIG US$85b bailout plan imminent:
Shares on WaMu, Wachovia recover on AIG hopes
Fed confirms US$85b rescue loan for AIG
US Government bails out AIG with US$85bil loan
AIA Malaysia unaffected by US woes
Labels: AIA/AIG
Friday, 12 September 2008
AIG Provides PA to DiGi's Customers
AIG General Insurance (M) Bhd has partnered DiGI to offer 5 mil DiGi's subscribers free PA coverage worth RM10,000.DiGi commented that it was "looking to innovate beyond telecommunications, especially in traditionally-bound industries such as insurance, to create a new way for people to get insured."
It sounds to me that AIG may explore using DiGi as a new distribution channel or DiGi is interested to talk to other insurers to distribute their products to DiGi's customers. 5 million is a big number, any taker? How about Maxis and Celcom?
Source: The Star
Labels: AIA/AIG
Friday, 5 September 2008
AIG Travel Assist
AIG Travel Assist opened its centre in Kuala Lumpur recently. There are 4 other such centres in the world, 2 in North America and 1 each in South America and Europe.AIG Travel Assist provides assistance to policyholders who are covered under the travel assist product. The premium ranges from RM6 for domestic holidays to RM300 for annual package and it depends on holiday destination and length of stay.
Source: Business Times
Friday, 16 May 2008
Greenberg: "AIG in Crisis"
I was trying to search the net for the full letter from Maurice Greenberg to AIG but without success. Instead I thought I would compile and post below whatever selected quotes that have been published elsewhere for the benefits of our readers:"Several top shareholders of AIG have called me expressing deep concern about the persistent and seemingly endless destruction of value at AIG"
"AIG is in crisis"
"The company's shareholders need to absorb the significance of the company's first-quarter losses"
"They (investors) also need time to consider the board's response to the crisis and the issues raised by this letter. "
"For this reason and others, a postponement of this week's annual meeting should be considered, so that all shareholders can give careful thought to how best to move AIG forward"
"AIG hasn't explained properly why it's raising $12.5 billion in new capital, while also increasing its dividend 10%"
"These events have led to a complete loss of credibility with the investment community"
Source: AOL Money, Fox Business, TheStreet.com
Labels: AIA/AIG
Friday, 9 May 2008
US$7.8 bil Q1 Net Loss for AIG
Q1 2008 has been tough for AIG as well, they reported a net loss of US$7.81 bil vs net income of US$4.13 bil for Q1 2007. The poor result is attributed to subprime mortgage crisis.
To strengthen its balance sheet, AIG will raise US$12.5 bil capital.
Source: The Star
Labels: AIA/AIG
