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

ING and Allianz do not need liquidity facility

Both ING and Allianz do not expect that they would need to draw down on the liquidity facility made available to insurers and takaful operators by BNM. Both have stated that their financial positions are strong and they do not face liquidity concerns.

Source: The Edge Daily

Insurance Companies Strategies in Facing Crisis

How are insurance companies in Malaysia handling the current financial crisis?

Allianz Malaysia Bhd

• Tapping on group's worldwide best practices: underwriting, claims, investment, IT etc
• Streamlining both general and life businesses
• Prudent investment strategy backed by well defined investment mandates, guidelines and limits

Manulife

• Have good risk management system and practices in product design, investment management and asset liability management
• Strict criteria in evaluating both fixed income and equities investment

Hong Leong Assurance

• Well diversified investments
• Minimum exposure to equity market, mainly in sound dividend-yielding stocks
• No exposure to collateralised debt obligations
• Investments mainly in local market

Source: The Star

Allianz Moving to the Top

Allianz is confident that it will be the top general insurer in terms of market share by end of the year. Allianz at present has 10% market share and with "very encouraging" Q3 results, it is confident that it will be the largest general insurer for 2008.

According to the industry statistics, in year 2007, based on Gross Direct Premium, the top 3 general insurers were: Kurnia, Mitsui Sumitomo and Allianz with respective market share of 10.92%, 6.72% and 5.93%. With the acquisition of Commerce Assurance (market share: 3.53%), Allianz would have moved to the 2nd position with market share of 9.46%.

Key strategies for Allianz:

• Customer segmentation
• Product development and pricing
• Co-locating life branches close to the general unit

Source: Business Times

Update on Allianz

Allianz has embarked on an initiative to enhance productivity and competitiveness by streamlining its operations for both its general and life businesses within 20 months. The aim was to create a more customer-centric organisation.

On the integration of its general insurance business with that of Commerce Assurance Berhad (CAB), all CAB's branches have been integrated within 6 months.

2 products from Allianz: PowerWealth and PowerLink are gaining more importance.

PowerLink: Investment-linked product with optional riders: critical illness, H&S, waiver of premium, PA etc.

PowerWealth: Whole life plan, guaranteed cash payment is made every year after 8 years in force until age 90.

Source: The Star

Allianz's Deadline Extended by 1 Year

Allianz Malaysia Berhad has been given until 30 Sept 2009 to comply with the 30% Bumiputera equity requirement by SC. The original deadline was 30 Sept 2008.

BNM will decide on whether the 30 Sept 2008 deadline for complying with 49% foreign shareholding will be similarly extended or not.

Source: Bursa Malaysia

Enhanced Motor Insurance Package

It is believed that Allianz General Insurance has teamed up with BMW to offer a comprehensive motor insurance package.

Some special features are:

• A brand new replacement car during the first 12 months BMW ownership in the event of total loss from accident or theft
• Guarantee use of only authorised BMW dealerships, service centres and genuine BMW parts
• Absence of premium loading and market value adjustment for subsequent renewals

Source: Motor Trader

Allianz is No. 2

Allianz General Insurance Co (M) Bhd has moved to the number 2 position in general insurance with a market share of close to 10% after merging with Commerce Assurance Bhd last year.

Other statistics:

• Gross written premium grew by 33.2% from RM561.9 mil (2006) to RM748.6 mil (2007)
• Allianz Life charted 20.6% growth in written premium in 2007

Source: The Star

New CEOs

Allianz Life: Alexander Ankel
Allianz General: Ng Hang Ming

Source: The Star

Stronger Q1 for Allianz

Allianz Malaysia Berhad has delivered a very strong Q1 results with RM17.7 mil vs RM3.0 mil in 2007 Q1. Revenue has also grown from RM277 mil to RM399 mil.

The strong performance was attributed to the acquisition of 100% of Commerce Assurance Bhd in August 2007, higher general insurance underwriting profit and better investment income.

Source: Bursa Malaysia

Allianz Targets 11% Growth

Allianz continues to target at double digit organic growth in 2008. The company acquired Commerce Assurance Bhd in August 2007 and does not rule out future acquisitions. The target set for combined ratio is not more than 95%.

Some statistics on Allianz:

• Secured RM994 mil gross written premiums (GWP) in 2007, made up of RM624 mil (life & general units of Allianz) and RM370 mil (Commerce Assurance Bhd).


• Recorded 10 to 11% growth in the last 4 years.


• Agency force of 8,000, main business contributor.


• 2nd largest general insurer in Malaysia with 10% market share.

The integration process post acquisition of Commerce Assurance is expected to complete by Q3 or Q4 of 2008. The new head office of the group will be in Plaza Sentral.

Source: Business Times

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.

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