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.

Insurance News - Prudential wins South Korea go-ahead to acquire AIA

Prudential wins South Korea go-ahead to acquire AIA
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.

Announcement - MAA

The Board of Directors of MAA Holdings Berhad wishes to announce that its wholly owned subsidiary, Malaysian Assurance Alliance Berhad (“MAA”) had received approval from Bank Negara Malaysia (“BNM”) vide ...
April 29, 2010

Insurance News Tan Liling has been appointed COO for Prudential. She was previously CFO of HLA and ING.

PAMB appoints Tan Liling as new COO

PRUDENTIAL Assurance Malaysia Berhad (PAMB) has appointed Tan Liling as its Chief Operations Officer.She replaces Jeffrey Yem, who has taken up the new role of Chief Information Officer.Tan, is a Bachelor of Economics graduate, from Monash University...
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.

Cost of financial advice tipped to fall: plan to ban commissions | The Australian

THE cost of financial advice is set to fall under government plans to ban commissions on financial advice now built into managed funds and superannuation.
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?

Zurich UK Life enhances protection proposition

Zurich UK Life has announced a range of new improvements to its mortgage and family protection proposition, aimed to appeal to a broad spectrum of advisers and their clients who want life and critical illness cover.
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.

Rivalry Haunts Prudential/AIA Integration

British insurer Prudential will try to reassure investors it can seamlessly absorb the Asian arm of AIG next week when it publishes the prospectus for a record $21 billion cash call to fund the takeover.
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.

Prudential's AIA deal hits shareholder glitch

LONDON (Reuters) - Prudential is facing the makings of a shareholder revolt over its $35.5 billion deal to buy AIA, raising the prospect the deal could fail and adding to pressure for a breakup of the ...
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.

Risk insurance escapes commission ban

SYDNEY:Australia announced sweeping changes to the financial planning industry yesterday, including the banning of commissions for advisers, in the wake of several high-profile corporate collapses.
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.

Govt in talks to resolve motor insurance complaints

THE government has received many complaints on Bank Negara Malaysia's proposal to restructure the country's third-party motor insurance policy, Deputy International Trade and Industry Minister Datuk Mukhriz Tun Mahathir said yesterday...
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.

AirAsia unit gets nod for Labuan captive insurance

AIRASIA Bhd’s subsidiary AirAsia Corporate Services Ltd has received the nod to carry on a Labuan captive insurance business in, from or through tax haven Labuan.It said the primary purpose of establishing ...
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.

Allianz Malaysia plans RM611mil rights issue

PETALING JAYA: Allianz Malaysia Bhd (AMB) has proposed to sell irredeemable convertible preference shares (ICPS) to entitled shareholders under a plan to raise as much as RM611mil in fresh capital, the insurer told Bursa Malaysia yesterday.
April 27, 2010

News Posts 20100404-20100410

Insurance News Aviva is making a come back in general insurance market starting with Singapore. Aviva General was sold to MSIG in Malaysia in 2006.

Aviva to re-enter Asia general insurance mart

LONDON: British insurer Aviva said yesterday it will re-enter Asia's general insurance business with the launch of services in Singapore, a month after rival Prudential bought the Asian unit of AIG. "Aviva ...
April 10, 2010

Insurance News Proton has been a long-time sponsor of BAM since 1985. However, in February 2010, ING came in as a new sponsor and players started wearing T-shirts with ING's logo in front at the German open. Proton now wants its logo back in front rather than on the sleeve. They may have smelled the chance of the national team winning the Thomas Cup to be held soon.

NST Online Proton demands prominence

PROTON Holdings Berhad is demanding that the Badminton Association of Malaysia (BAM) continues to give it the same prominence which it has enjoyed since 1985. It also wants the company's logo to be featured in front of the T-shirts worn by national players.
April 10, 2010

Insurance News Allianz Life's existing CEO will leave the country to head for Turkey. His position will be taken over by the current CEO of Allianz in Indonesia.

Bursa Announcement - Allianz

The Company wishes to announce that the Chief Executive Officer (“CEO”) of the Company, Mr. Cornelius Alexander Ioannis Ankel has been designated to take over the management of Allianz operations in Turkey.Mr. ...
April 10, 2010

Insurance News Lonpac's underwriting surplus before management expenses in Q1 improved by 52%, on the back of 11.5% increase in revenue, compared to the same period last year.

LPI Capital net profit up

PETALING JAYA: LPI Capital Bhd posted a slight increase in net profit of RM38.32mil for its first quarter results ended March 31, 2010 as compared with RM35.5mil in the previous corresponding period.
April 8, 2010

Insurance News Lai Leong Pin, the Chief Agency Officer of Prudential, has been appointed as Prudential's General Manager.

Prudential Assurance appoints Lai as GM

PRUDENTIAL Assurance Malaysia Bhd has appointed Lai Leong Pin as its general manager.In a company statement, Prudential chief executive officer Charlie Oropeza said Lai’s appointment underlined the importance ...
April 7, 2010

Insurance News The proposed TPBID compensates for injuries but does not cover other vagaries such as loss of current and future income.

CAP hails Najibs statement on insurance

KLANG: The Consumers Asso­ciation of Penang (CAP) has welcomed the Prime Minister’s statement that he will tell Bank Negara to consult all interested parties with regard to the proposed new basic motor insurance coverage for third-party injuries and death.
April 6, 2010

Insurance News Allianz General launched a PA product that covers among others medical expenses related to dengue, malaria, JE; kidnap, snatch theft etc.

Allianz unveils enhanced personal accident plan

ALLIANZ General Insurance Company (Malaysia) Bhd has introduced the enhanced Personal Accident plan Allianz Shield, which is designed to provide a more comprehensive coverage, it said in a statement.Allianz ...
April 6, 2010

Insurance News FOMCA proposes that a fund be setup and managed by government to resolve the TPBID issue. Those who are injured in car accident can seek compensation from the fund. This approach is used in Australian and NZ. The fund can operate in a similar fashion as SOCSO and is to be funded by the public.

消聯：參考外國減少爭議‧應設基金供車禍索賠 | 星洲日報

（雪蘭莪‧八打靈再也）大馬消費人聯合會（FOMCA）總秘書莫哈末沙阿尼建議當局設立一個由政府管理的基金，讓任何在車禍受傷的人士索取賠償金，減少涉 及三號車險的投保人、保險業者及第3方的爭議。
April 6, 2010

Insurance News Maybank will transfer its shares in Mayban Fortis Holdings Bhd to Etiqa International Holdings Sdn Bhd. After the transfer, Etiqa International will serve as the investment holding company for Maybank's insurance, takaful and asset management businesses.

Maybank to transfer stake to Etiqa

Malayan Banking Bhd (Maybank) today announced the proposed transfer of 165.321 million ordinary shares in Mayban Fortis Holdings Bhd, representing its direct equity interest of 69.05 per cent, to Etiqa International Holdings Sdn Bhd.
April 5, 2010

Insurance News Watch out for this type of motor insurance scam that was exposed in UK. A car owner is paid a fee to admit liability for causing car damage and bodily injury in an accident that never happened. The car of the "victim" then gets smashed up in a yard and an insurance claim of around £20,000 is filed.

RSA and BBC expose cash-for-crash scam

Undercover reporters allege that a Woverhampton-based outfit, run by Zeeshan Ahmad, fakes accidents by smashing up cars in a yard.
April 4, 2010

Insurance News HSBC Amanah Takaful will launch a regular contribution retirement product in May, which has features similar to a product sold in HK by HSBC. 7 new products are planned to be rolled out this year. The global financial crisis has affected the single contribution investment-linked plans while favouring non-ILP plans.

Retirement plan to drive HSBC Amanah's growth

HSBC Amanah Takaful (Malaysia) Sdn Bhd, the Islamic insurance arm of HSBC Bank Malaysia Bhd, is poised to launch a new regular premium retirement plan in May that is expected to drive the company's growth for 2010. ...
April 4, 2010

Insurance News PM instructed BNM to consult consumer groups before finalising TPBID scheme. The scheme apparently has a cap of RM100,000 compensation. PM also took note of the loss suffered by the industry in motor insurance.

Consult groups on third party insurance, Bank Negara told

BANK Negara Malaysia (BNM) must take into consideration the plight of the people when proposing new basic motor insurance coverage for third-party bodily injury and death, just like enacting any other policy. ...
April 4, 2010

News Digest 20100321-20100327

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News Digest 20100309-20100320

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News Digest 20100223-20100301

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News Digest 20100124-20100130

Insurance News Etiqa Takaful Bhd appoints Shahril Azuar Jimin as its new CEO. http://bit.ly/cxXiRn

Shahril Is New CEO Of Etiqa Takaful :: Bernama.com

Insurance News The government proposed in GTP for insurers to reduce insurance premiums for cars, motorcycles and houses installed with security features. But surely the motor tariff will have to go in the first place. Right? http://bit.ly/8XTcx5

Five initiatives shortlisted to check crime
The Home Ministry has shortlisted five initiatives to achieve the target of reducing the overall crime index by at least 5% by the end of this year, according to the GTP Roadmap.

Insurance News HSBC Amanah Takaful will launch 7 products this year, focusing on medical and retirement. http://bit.ly/cnBWIG Meanwhile, an insurance survey by HSBC shows that 49% of Malaysians plan to save more in the next 6 months. 58% of the survey respondents are likely to buy products that offer capital protection. http://bit.ly/9L05nT

HSBC Amanah Takaful to launch 7 products in 2010
HSBC Amanah Takaful (Malaysia) Sdn Bhd, the Islamic insurance arm of HSBC Bank Malaysia Bhd, plans to launch up to seven products this year. Chief executive officer Zainuddin Ishak said the company is now focused on traditional long-term plans such as retirement and medical health. ...

Insurance News Zurich Financial now says it wants to have controlling stake in its joint venture in Malaysia but would do it in such a way that all parties are comfortable. Zurich Financial currently holds 40% stake in the JV. http://bit.ly/cF3fXV

Zurich Financial eyes controlling stake in Malaysian venture
DAVOS: Swiss insurer Zurich Financial Services Ltd is exploring ways to take a controlling stake in its Malaysian joint venture and grow its business in Indonesia, its Asia-Pacific head said yesterday. ...

Insurance News Great Eastern denies that it is in talks to sell a stake in Malaysian unit. http://bit.ly/a9hgGR

Great Eastern not in talks to sell stake in Malaysian unit
GREAT Eastern Holdings Ltd (GEH) said it is not in talks to sell a stake in its Malaysian insurance arm, Great Eastern Life Assurance (Malaysia) Bhd (GELM). "We wish to state that we are currently not ...

Insurance News Allianz General is paying profit commission of RM6.26 mil to its qualifying agents (25% of its agency force) before Chinese New Year. http://bit.ly/81tH9B

Allianz pays commissions to agents early
Allianz General Insurance Co (M) Bhd (AGIC) kept its promise for the fourth consecutive year by making an early profit commission payment.In a statement today, AGIC's chief executive officer Ng Hang Ming ...

Insurance News Tokio Marine is targeting a lower growth rate of 10% in 2010 compared with the 20% it achieved in 2009. However, it still expects to outpace the industry's expected growth rate of 6-7%. Prefers non-motor lines of business e.g. fire, marine, cargo and PA. Not ruling out acquisition. http://bit.ly/81WhB0

Tokio Marine expects 10% premium growth this year
KUALA LUMPUR: Tokio Marine Insurans (Malaysia) Bhd (TMIM) expects a premium growth of between five to 10 per cent this year, its chief executive officer Dr Michael Heng Kiah Ngan, said Tuesday.

Insurance News Will Great Eastern divests it stake in Malaysia? How much is the divestment, if any? Is Khazanah the suitor or any other parties? Is divestment a pre-condition of being granted the takaful licence? Would IPO be an option if a direct shareholder cannot be found? This article may shed some light. http://bit.ly/8iwedl

Khazanah said among suitors for Great Eastern
A group of potential suitors, including state-owned investment agency Khazanah Nasional Bhd, is said to have lined up for a stake in Singapore's Great Eastern Life Assurance (Malaysia) Bhd to help realise the insurer's takaful ambition. ...

Insurance News Takaful Malaysia won the Global Diamond Award while its Group MD Hassan Kamil won the "Smart Entrepreneur" Award. http://bit.ly/6YbYwS

Takaful Malaysia, group MD win major awards

Insurance News While many may think that China and India markets are hot, Prudential is scaling back its growth ambitions in both countries. Instead investment would be pushed into fast-growing economies in southeast Asia, including Malaysia, Vietnam and Indonesia. The reason for such decision seems to be the slow relaxation of restrictions on foreign ownership of financial firms in China and India. http://bit.ly/7CJkyf

Prudential to Scale Back on India, China - NYTimes.com
LONDON (Reuters) - Britain's biggest insurer Prudential has begun a shake-up of its Asian business that will see it scale back its ambitions for growth in India and China, The Sunday Times said.

Insurance News LIAM, ACE Synergy and Prudential spoke on 2010 outlook and challenges. http://bit.ly/8H8IxQ

Malaysian insurers in for better times
PETALING JAYA: Despite facing some hurdles, the local insurance industry has a promising outlook with new life business weighted premium forecast to grow 12.5% to RM3.6bil this year.

News Digest 20100117-20100123

Insurance News TokioMarine has promoted Deputy CEO Dr Michael Heng as CEO, replacing PhangKwang Chee who has helmed the top post for the past 9 years. TokioMarine's market share grew from 48th position in 1999 to 5th position last year. http://bit.ly/7AXC0g

Tokio Marine names new CEO
Tokio Marine Insurans (Malaysia) Bhd today announced the appointment of Dr Michael Heng Kiah Ngan as its new chief executive officer.Heng, who was previously the company's deputy chief executive officer, ...

Insurance News Etiqa launches Triple Lifestyle Protector. Features: 15% SA paid every 3 years from 5th policy year; 100% SA returned at maturity; premium payment period of 20 years or until age 85. http://bit.ly/7vkOOd http://bit.ly/8KXxzy

BERNAMA - Etiqa Insurance Jangka Pelan Terbaharu Dapat Sambutan Baik
KUALA LUMPUR, 20 Jan (Bernama) -- Etiqa Insurance Bhd menjangka pelan Triple Lifestyle Protector yang dilancarkan baru-baru ini di mana ia menawarkan pelbagai faedah di bawah satu polisi mendapat sambutan yang baik. ...

Insurance News Prudential is targeting the largely untapped and underserved bumiputera market, focusing on young generation especially those below age 25. Great Eastern has also previously unveiled strategies that include targeting young generation. http://bit.ly/6nHL5D http://www.actuaries.com.my/news/2010/01/strategies-of-prudential-and-great.html

Prudential to tap into growing Bumi market
LEADING life insurer Prudential Assurance Malaysia Bhd wants to tap into the growing Bumiputera market by increasing its Bumiputera agents, said its top executive. Chief executive officer Charlie Oropeza ...

Insurance News Prudential launches an aggressive branding campaign covering 9 markets in the region in 7 languages on "The Power of Listening". http://bit.ly/5XgKaj

The power of listening
PRUDENTIAL Corporation Asia recently launched “The Power of Listening”, its largest branding campaign in its 85-year history in Asia.The campaign reinforces the company’s “Always Listening. Always Understanding” ...

Insurance News Tune Money aims to double insurance policies sold to 3,000-4,000 this year. Currently it partners Multi-Purpose for motor insurance and Tokio Marine for PA and home insurance. Takaful is in the pipeline as well as H&S, life, travel and pets. http://bit.ly/8Ne1wd http://bit.ly/5kaKoB

Tune Money aims for RM4m net profit this year
ONLINE financial services provider Tune Money Sdn Bhd, which has been profitable since last April, aims for a net profit of up to RM4 million this year as it grows its prepaid card and insurance base. ...

Insurance News Zurich Financial has come out to clarify that the partners in MCIS Zurich are still keen to work together although admitting some of the facts reported earlier on the tension in the relationship were not wrong. Zurich Financial is also not selling its stake in MCIS Zurich. http://www.actuaries.com.my/news/2009/12/no-strained-ties-between-shareholders.html http://bit.ly/7Guc11

MCIS Zurich owners deny rift, remain keen on takaful ops
MCIS Zurich Insurance Bhd's major shareholders have denied that there is any rift between them and say they remain keen to build the business together. They also denied that Switzerland's largest insurer, Zurich Financial Services Ltd (Zurich FS), might sell its shares in MCIS Zurich. ...

Insurance News Allianz General launched a Directors' and Officers' liabilities insurance product. http://bit.ly/54HdEh

Allianz debuts product for corporate leaders
Allianz General Insurance Company (Malaysia) Bhd (AGIC) today launched a new generation of insurance protection, specially tailored for leaders of Malaysian corporations."Allianz Protect Platinum goes ...

Insurance News MFPC launches Syariah RFP programme, appoints MPM as examination facilitator. http://bit.ly/6MHuhm

Insurance News Takaful Ikhlas is the winner of best brand in the services -Islamic protection and the healthcare insurance categories. http://bit.ly/7TIDUk

Takaful wins Brand Laureate awards
TAKAFUL Ikhlas Sdn Bhd has won two awards at the BrandLaureate SMEs Chapter Awards 2009 for brands in corporate branding. It was named the best brand in the services -Islamic protection and the healthcare insurance categories. ...

News Digest 20091116-20100106

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30pc quota lifted for Allianz

Allianz does not need to comply with 30% Bumiputera equity requirement any more.

Previously Allianz applied to Securities Commission for extension of time to 30/9/2009 to meet the 30% requirement. Following Government's announcement on 30/6/2009, the EPU has confirmed vide its letter to Allianz that it no longer requires to meet the 30% quota.

Source: Bursa

Star's article on RBC and liberalisation

I am puzzled with some of the statements in the article:

"The risk-based capital (RBC) framework, which came into force beginning this year, would also spur the insurers’ future earnings growth as it would allow them to be better capitalised"

How would better capitalised spur the insurers' future earnings growth? If an insurer was under-capitalised pre-RBC and now the capital is adequate, there should not be any impact on future earnings growth, or should it? I guess if an insurer has excess capital under RBC and they put it into better use by writing more businesses then there might be a positive impact on future earnings.

"For locally incorporated foreign insurers like Manulife Holdings Bhd and Allianz Malaysia Bhd, an analyst with an investment bank said the recent financial sector liberalisation measures was a boon to their business as it had allowed them to tie up with more than one bank to distribute products."

I thought prior to liberalisation, foreign banks could not tie up with foreign insurers in bancassurance. There was no limit on the number of bancassurance partners though. For example, foreign insurers could tie up with more than 1 local bank. This restriction is of course removed following liberalisation.

I stand to be corrected on the above.

Source: The Star

PowerSaver

Allianz recently launched a new plan called PowerSaver with the following features:

• 30-year participating endowment plan
• Premium term = 8 years
• At the end of 5th policy year, can convert to fully paid-up policy
• Yearly guaranteed cash payment = 4% of basic SA, payable after 5th policy year

Source: The Star, TAS Research

Allianz obtained retakaful licence

Allianz SE Life Reinsurance Branch Labuan has received approval to set up a separate fund to transact retakaful business.

Source: Business Times

Insurance and the crisis

Views expressed by various industry players during an interview with the Star:

Manulife

Outlook is positive. Consumers will be more prudent and long-term insurance products will be the preferred choice.

Allianz

Company can weather the crisis due to access to numerous best global practices.

Great Eastern's Insurance Agent

Harder to sell, consumers are more conservative and defer purchase. None has cancelled policy though.

Source: The Star

Extending coverage for landslide is advisable

Various industry players including those from Allianz, Hong Leong and PIAM are urging customers to consider including coverage for landslides and landslips in their insurance policy. The additional cost is 0.075% of the sum insured.

Insurers and agents also need to play the role of keeping their customers aware of the available coverage.

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

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.

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