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

Takaful Ikhlas mulls overseas expansion

TAKAFUL Ikhlas Sdn Bhd, a subsidiary of Main Board-listed MNRB Holdings Bhd, is weighing options of expanding its business overseas and is looking at three countries including Indonesia as its foreign ...


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

Takaful players counting on non-bumiputra agents

PETALING JAYA: Takaful players of late, have been aggressively scouting for non-bumiputra agents to strengthen their grip in the lucrative Islamic insurance market.

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

UK's Prudential to list in Singapore

LONDON: Prudential plc, the UK insurer buying American International Group Inc's main Asian unit, applied for a secondary listing in Singapore as it seeks to expand its shareholder base in the region.The ...

April 23, 2010

Insurance News Takaful Ikhlas aims to increase its contributions from Sarawak operations from RM18 to RM25 mil. http://bit.ly/alKSrf

Takaful Ikhlas eyes RM25mil in premiums from S'wak ops

KUCHING: Takaful Ikhlas Sdn Bhd is eyeing premiums of RM25 million in its third year of operation in Sarawak, President and Chief Executive Officer, Datuk Syed Moheeb Syed Kamarulzaman said Friday.

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

BNM Statistics

The following series of Tables 1-5 contain abstracts from the quarterly returns submitted by insurers under section 85, 89 and 193 of the Insurance Act 1996. The figures are for calendar year ending 31 Dec 2009 and business within Malaysia.

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

BNM Notices & Announcements

Following the Government's announcement in Budget 2010 on the need to provide adequate access to reasonably priced basic motor insurance coverage, Bank Negara Malaysia is currently working with the relevant ...

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

Prudential gets HK listing OK, eyes Singapore-sources | Reuters

HONG KONG (Reuters) - British insurer Prudential Plc is considering a secondary listing on the Singapore Stock Exchange, as part of a wider plan to lure Asian investors to its massive $21 ...

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

UPDATE 1-Prudential gets early Hong Kong IPO hearing -source | Reuters

* Pru trying to list quickly ahead of rights offering * Listing, offering key to AIA takeover (Adds details, background) By Kennix Chim HONG KONG, April 21 (Reuters) - Britain's Prudential Plc

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

Bar Council unhappy with insurance scheme proposal

THE legal fraternity has described Bank Negara Malaysia's proposed reform of the third-party motor insurance scheme as "evil" and against public interest. The Malaysian Bar Council is opposing vehemently ...

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

New company for third-party bodily injury and death insurance

KUALA LUMPUR: The Government and insurance industry players will jointly set up a new company (newco) to solely undertake the proposed third-party bodily injury and death insurance scheme (TPBID).

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

Etiqa aims to recruit more agents

Malayan Banking Bhd’s insurance and takaful arm Etiqa, is offering visitors to the Unit Trust Week 2010 (MSAM 2010) in Kuching, a career as an agent for the company.Describing the job as more flexible ...

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

PacificMas gets BNM nod to start talks with Great Eastern over sale of insurer

KUALA LUMPUR: PACIFICMAS BHD has received Bank Negara Malaysia's (BNM) approval to start talks with Great Eastern Group to dispose of its unit The Pacific Insurance Bhd.

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

Aussie regulator blocks NAB bid for AXA unit

SYDNEY:Australia's competition watchdog blocked National Australia Bank's US $13 billion (US$1 = RM3.22) bid for AXA Asia Pacific Holdings yesterday, putting the agreed deal in limbo and allowing rival bidder AMP to make a comeback. ...

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

Move to limit liability in third party claims

The government is looking at limiting liability of motor insurers to third party claimants to RM2 million, with insurers and the government acting as co-owners of a new company (newco) that will underwrite third party injury risks. ...

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

BNM to restructure motor insurance policy

BANK Negara Malaysia has proposed to restructure the country's motor insurance policy in line with the government's aim of ensuring access for motorists to the mandatory Third-Party Bodily Injury and Death ...

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

Insurance market to gain momentum

The insurance market is expected to register improved results in 2010 on the back of economic recovery and increasing awareness on the role of insurance as a protection and financial planning tool.In stating ...

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

Talks on sale of insurer spark interest in Jerneh

PETALING JAYA: Investors have been showing keen interest in Jerneh Asia Bhd since it announced in November that it was seeking Bank Negara approval to start talks with certain parties with the aim of hiving off its insurance arm Jerneh Insurance (M) Bhd.

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

AXA Affin Life focused on building solid foundation

PETALING JAYA: AXA Affin Life Insurance Bhd, a relatively new entrant in the insurance market, may venture into the lucrative takaful business in the next two years.

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

No pressure to cut AIA offer: Pru’s Asia CEO

HONG KONG: UK insurer Prudential Plc, which last month launched a US$35.5 billion takeover of AIG’s Asian life insurer unit, is not facing shareholder pressure to cut the purchase price, its Asia CEO said. ...

April 18, 2010

News Digest 20100301-20100309

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News Digest 20100223-20100301

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News Digest 20100203-20100223

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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 ...

AXA Affin Life needs to double premiums

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.

Strategies deployed to meet the targets:

• Leverage on global brand signature: "Redefining Standards"
• Increase number of agents from present 400 to 3,000 by 2012
• Launch 1 new product each quarter

Source: Business Times, The Edge

News Digest 20100106-20100113

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AXA-Affin aims high

AXA-Affin also wants to be among the top 5 insurance players in Malaysia. It aims to command 8% market share by 2012. Yesterday we reported that TM Asia aimed to achieve 10% market share in 3 to 5 years time.

Currently the top 5 players include Great Eastern, Prudential, ING and AIA. With both TM Asia and AXA-Affin aiming to be among the top 5, they will either need to remove GE, Pru, ING or AIA from their positions or only 1 of them can make it to the top 5. There are also no doubt other players in the market aiming to move into the top positions.

AXA-Affin's strategies to go to the top include:

• Brand campaign
• 3 equally strong distribution channels: agency, bancassurance, other alternative channels such as telemarketing

Other information on AXA-Affin:

• Bancassurance partners: Affin Bank and 5 other local and global banks
• 400 agents, aims to increase to 1,200 in 1 year, and to 3,000 in 3 years
• Total gross premiums RM40 mil, aims to increase to RM80-100 mil next year
• CAR is close to 260%

Source: The Edge Weekly (not available online)

Loke's appointment approved

Loke Kah Meng's appointment as CEO of AXA Affin Life has been approved by BNM.

Earlier posts: 1 & 2

Source: Business Times

No news is good news

Not much insurance news these few days. The Star published news on Loke Kah Meng joining Axa Affin Life as CEO, a news that is 2-month old to our blog readers.

Source: The Star

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

ValuePac

Axa Affin has launched a new product called ValuePac. Product features:

• Apparently a term assurance
• Term: 5, 10, 15, 20 (?)
• With renewability and convertibility options

Source: Bernama

Resignation of 3 CEOs

3 insurance CEOs have recently resigned:

• Cliff Lee, Tahan Insurance Malaysia Bhd
• Vincent Kwo, AXA Affin Life Assurance
• Mohd Fauzi Yaakub, Uni.Asia General Insurance Bhd

Cliff Lee was also PIAM's chairman previously. The position has been taken over by the then deputy chairman Mohd Yusof Idris, CEO of Oriental Capital Insurance Bhd.

Some industry statistics:

• Gross premiums for GI: RM11.32 bil (2008) vs RM10.45 bil (2007), growth rate: 8.37%
• NB premiums for Life: RM7.13 bil (2008) vs RM7.6 bil (2007), growth rate: -6.2%

Source: The Star

Affin to acquire stake in BH Insurance

Affin will commence preliminary negotiations soon with Felda Holdings Bhd to acquire the latter's equity interest in BH Insurance after receiving green light from BNM.

Source: The Star

RBS Smart Save

AXA Affin has launched a new plan called RBS Smart Save, to be distributed through Royal Bank of Scotland Bhd.

Product features:

• Single premium investment-linked
• 4 funds available
• Sum assured = 125% of Single Premium

Source: Business Times

AXA-Affin targets lower growth

AXA-Affin General is projecting a 14% growth in gross premiums in 2009, driven by commercial lines (property, marine, engineering, commercial motor and other liability). This compares to the 18% growth in 1st 9 months in 2008.

Other statistics and facts:

• Gross premium in 1st 9 months in 2008: RM324 mil
• Industry growth in 1st 9 months in 2008: 10%
• Agency force: 1,700. Target to recruit 150 in 2009
• Segmentation to be applied to motor business
• No lay-offs, VSS or salary cut in 2009

Source: The Star

Dimension

Axa Affin Life Insurance Bhd launched a new product called Dimension.

Product Features:

• Whole life protection, access to 4 investment-linked funds
• Guarantees 4% of SA as annual income after 10 years in force and continues until age 100
• Target age group: 30 to 50
• Minimum annual premium: RM3,000
• Minimum SA: RM20,000
• Target premium: RM10 mil

Source: The Star, Bernama and Business Times

Axa Affin Calls off MAA's Acquisition

LATEST

Axa Affin has called off its talk to acquire MAA. MAA share closed 1 sen down at RM1.29 with low trading volume.

Source: Bursa Malaysia

News in Brief

1. Prudential and Bank AlJazira in joint venture to conduct takaful business in Saudi Arabia. More >>
2. Takaful Ikhlas provides Group PA cover for 104,480 Rukun Tetangga members and paid out RM400,000 claims so far in 2 years. More >>
3. Axa Affin Life launched an online game on balancing wealth and quality of life, with top prize of RM50,000.

AXA Affin's Corporate Activities

AXA Affin General Insurance Bhd is currently involved in 2 potential M&A deals: merger with Boustead Holdings Bhd's BH Insurance (M) Bhd and acquisition of MAA.

Other business information:

• Total gross premium RM312 mil (2007), growth of 4.1% (industry average 4.07%)
• 1,500 agents nationwide, incl. 273 in East Malaysia
• Targets to add 15% more agents in West Malaysia in 2008
• Business mix: motor insurance (45%), commercial insurance (30%), health & marine
• Profit margin 16%, top 5 most profitable
• Market share 2.7%, ranked 18 out of 35

Source: The Star

MAA Sells Life & General Units Separately

Business Times reported that MAA is to sell its general insurance business to AMAssurance and life insurance business to either Axa or Allianz.

AmAssurance is also interested in MAA's takaful business, as reported in this blog earlier.

The splitting of business will attract better price for MAA. Given that AMAssurance is also in the process of splitting its composite license, MAA does not expect any objection from BNM on its proposal to split the business and sell them separately. MAA has yet to seek BNM's approval on splitting and the process is expected to take 6 to 9 months.

http://www.btimes.com.my/Current_News/BTIMES/Monday/Latest/maa1.xml/Article/

AXA Affin to Launch Bancassurance with Affin Bank

The Star reported that AXA Affin would launch bancassurance with Affin Bank by August 2008. Affin Bank has 82 branches in Malaysia. AXA Affin is also in negotiation with other banks for bancassurance venture.

http://biz.thestar.com.my/news/story.asp?file=/2008/3/14/business/20640782&sec=business

AXA Affin would also retain and strengthen its agency force.

AXA Affin currently has offices in Kuala Lumpur and Johor Bahru and 4 new branches will be opened soon in Penang, Petaling Jaya, Sibu and Kuching.