News Digest 20100201-20100205

Insurance News RHB Cap wants to increase its stake in RHB Insurance by buying from the other shareholders.

http://bit.ly/d5klaz
RHB Cap talks to buy bigger stake in RHB Insurance
PETALING JAYA: RHB Capital Bhd announced that Bank Negara has no objection in principle for the company to begin negotiations with the remaining shareholders of RHB Insurance Bhd to acquire the remaining equity interest in RHB Insurance not already owned by RHB Capital.

Insurance News Prudential opens its new training academy in Ukay Perdana, KL. Prudential has 11,000 agents, out of which 3,000 are bumi agents. The corresponding figures a year ago were 9,000 and 1,500. Islamic products contributed 15-20% of its revenue.

http://bit.ly/c60nTn http://bit.ly/aG9NT4
Prudential eyes increase in number of agents
PRUDENTIAL Assurance Malaysia Bhd expects to increase the number of agents this year following the opening of its new training academy.Its chief executive officer Charlie Oropeza said in line with the ...

Insurance News EON Bank achieved bancassurance sales of RM105 mil in 2009 and is now targeting RM200 mil for 2010. EON Bank partners Uni.Asia in their bancassurance venture.

http://bit.ly/aFBdGx
EON Bank sets RM200m bancassurance sales target
EON Bank Group, the seventh biggest bank by assets, aims to double bancassurance sales to RM200 million this year on more new products. This is compared to RM105 million sales booked last year, chief executive officer Michael Lor said. ...

Insurance News OCBC given extension until 17/10/2010 to resolve holding 2 GI licences in OACM and Pacific Insurance.

http://bit.ly/9rAqRK
OCBC unit given extension to comply with conditions
PETALING JAYA: Oversea-Chinese Banking Corp Ltd (OCBC) wholly owned unit, OCBC Capital (M) Sdn Bhd, has been granted a one-year extension to Oct 17 by Bank Negara to comply with the two conditions imposed by the central bank for the takeover of PacificMas Bhd, which was completed in April 2008.

Insurance News Great Eastern targets 25% growth this year, to hit RM1 bil NB premium. Emphasis will be on agency, bancassurance and younger population.
1. Agency: recruit more graduates/professionals, Agency Transformation Programme, Go4More - help agents to break their own glass ceiling
2. Bancassurance: tie-up with OCBC
3. Low cos...t products for young population

http://bit.ly/be1DuT
Great Eastern eyes RM1bil in new premiums
PETALING JAYA: Great Eastern Life Assurance (M) Bhd, the country’s largest and oldest insurer, is targeting RM1bil in new business premiums this year.

Insurance News The growth of takaful industry in Malaysia in 2009 is estimated to be 15% on total contribution basis. Main challenge identified by MTA is attracting quality talents.

http://bit.ly/dbqGZk
Takaful industry to see steady growth
THE takaful industry will continue its steady growth momentum this year in line with the expansion of the industry globally which has seen an annual growth rate of 25 per cent the past few years.The industry ...

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 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

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

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)

TM Asia's market share target and strategies

TM Asia targets to achieve 10% market share in 3 to 5 years time. Its market share was 1.5% in 2007.

Strategies to achieve the target:

• Increase number of agents: from 2,700 currently to 3,500 in the next 2 years
• Rebrand
• Bancassurance: in talk with 1 bank currently
• Group insurance: targets 1,400 Japanese companies in Malaysia

Source: The Star

STMB's strategies to increase market share

STMB aims to achieve 50% market share in 2-3 years' time from the current 40% by implementing the following:

• Introduction of competitive and innovative products
• Expansion of distribution channels
• Moving into multi-racial target market
• Increase its visibility and brand awareness with RM15 mil rebranding exercise

Source: The Star

Manulife yet to decide on partner

Manulife has yet to finalise its partner in the application for the new takaful licence. To justify its investment in the new licence, Manulife would need to attract 500,000 customers in 5 years.

To target the mass market, Manulife will engage multiple distribution partners such as banks, telecommunication companies, hypermarkets etc.

Source: Business Times

STMB rebrands

STMB will spend RM15 mil to rebrand with the goal to achieve 50% market share.

Related story: STMB eyeing more than 50% market share

Source: Business Times

i-Protect

This has nothing to do with iPhone!

TM Asia Life launched a new product called i-Protect with the following features:

• Regular premium investment-linked
• Premium from RM100 per month
• Option to receive annual payout from the later of age 55 or 5 years after policy is in force

Target premium is RM10 mil in 12 months.

TM Asia also launched a new fund called Asia Orient Fund.

Source: The Edge, Business Times

Uni Guaranteed Cash Plus

Uni.Asia sets a target of RM260 mil NB premium for FY 3/2010:

• RM100 mil for RP
• RM100 mil for SP
• RM60 mil for credit related and others

Other information on Uni.Asia:

• 37% market share in bancassurance business
• 88% growth as of 8/2010
• Target growth: 85% in FY 3/2010
• New product launched: Uni Guaranteed Cash Plus (UGCP):
• RM100 mil premium targeted: RM30 mil from agency, RM100 mil from other channels

Source: Business Times

TM Asia expects to hit target

TM Asia expects to achieve its 2009 target of RM183 mil premium. In 2008, it recorded RM158 mil.

2 capital-protected investment-linked products: Asia TriMax and Asia Jade brought in RM40 mil.

Source: Bernama

Manulife's response to liberalisation

Manulife wants to add 5 new branches by 2011, location including Kuching and Penang. Currently Manulife has 6 centres nationwide.

For bancassurance, it intends to form more partnerships, focusing on local banks. Manulife's current bank partners are:

• OCBC Bank
• Alliance Bank
• Citibank
• HSBC Bank

Bancassurance currently contributes 10% of the business and the aim is to increase this to 33%.

Source: Business Times

Manulife unit trust sets targets

Manulife's new unit trust arm has set the following targets:

• RM1.7 bil sales by end 2010
• 20 funds by end 2010
• 5 funds in 2009:
• 2 local funds in Oct 2009
• Equities
• Bonds
• 3 foreign funds in Dec 2009
• Global resources
• China value
• Indian equities

Source: Business Times

Kurnia sets expense ratio target

Kurnia has set an expense ratio target of 15% and it wants to achieve it within 3 years. Its current expense ratio is 23.1%.

Source: Business Times

Prudential's strategies

Prudential's new CEO has made known his strategies going forward:

On distribution:

• Builds its telemarketing reach, possible tie-up with telcos
• Looks for more bancassurance partners, current sole partner is Standard Chartered
• Continues to expand its agency force (currently 10,300)
• Turns more agents to wealth planners (1,800 as at Dec 2008)

On product strategy:

• Relook at traditional products

On customer service, focus on 5 key service points:

• Application is made
• Policy is issued
• Bill is issued
• Policy request is made
• Claim is made

Source: Business Times

STMB eyeing more than 50pc market share

STMB is eyeing more than 50% market share (by what measure?) and has identified general takaful and retail family market as the key growth drivers.

The following 3 new takaful products will be launched for FY 6/2010:

• Takaful myGraduan (protection and savings plan)
• Takaful myInvest (protection and investment plan)
• Takaful myGemilang (retirement plan)

The advantages of liberalisation according to STMB are:

• Increased innovation in products
• New technology

The disadvantages are:

• Market share of existing players reduced
• Staff pinching

Source: The Star

Etiqa Takaful to expand in Asian region

Etiqa Takaful claimed that it had penetrated Singapore and Brunei markets and was working with a local company in Pakistan.

It also plans to enhance its sales in the Asian region by expanding to several countries soon.

Source: Business Times

Global Recovery Income Plan (GRIP)

HLTMT launched GRIP yesterday. Product features:

• Australian-denominated syariah-compliant investment-linked takaful plan
• Capital protected
• 4-year term
• Min investment: A$10,000
• Sum covered: up to 125% of initial contribution
• Max sum covered per participant: A$600,000
• Offer period: 3/9/09 to 17/10/09
• Annual income distribution: 1st 3 years fixed, 4th year performance based
• Target contributions: A$30 mil

Source: The Star, Business Times

8.5% growth for MNRB Group

MNRB is projecting 8.5% growth in revenue for FY 3/2010 comapred with 20% achieved in FY 3/2009:

• Malaysian Re: 15-20% growth compared to 20% growth in FY 3/2009
• Takaful Ikhlas: RM600 mil gross contributions for FY 3/2010 (RM580.5 mil FY 3/2009)
• MNRB Retakaful: 30% growth for overseas business

Source: Business Times, The Star

EON bank considers acquisition of insurer

EON Bank is in active talks to either acquire a stake in or form a joint venture partnership with insurer to strengthen its bancassurance business.

EON Bank's preferred partner is a composite insurer, the bank is strong in hire purchase and housing loans and a composite insurer will fit in the picture well.

Target: Bancassurance and other non-interest income to contribute 25 - 30% of its revenue.
Current: 20%
Timeframe: 3 years

Previous related posts:

1. EON Bank interested in MCIS Zurich
2. Acquisition of MCIS to be completed by Sept 2009
3. EON Bank will not acquire MCIS
4. PacificMas ceases talks with Aureos and EON
   
   Source: The Star, Business Times

Hannover Re targets 15% growth

Hannover Re Malaysia is targeting 15% growth in premiums this year. The markets in Malaysia and Thailand are seen to be driving the growth with the industry moving towards more traditional protection products.

Hannover Re Malaysia covers Asean, Pakistan and India.

Source: Business Times

Uni LifeIncome

Uni.Asia launched Uni LifeIncome with the following product features and design:

• 5% guaranteed cash payment up to age 88 (5% of sum assured, not total premiums paid)
• Covers death, TPD
• Waiver of premium during critical illness
• Entry age: 14 days to 60 years
• Option of premium payments ranging from RM25,000 to RM300,000 (what does this mean???)

Target premium: RM5 mil in 1st year

Source: Bernama

Maid Protector

RHB launched a new product named Maid Protector, to be distributed through Pos Malaysia.

Product features:

• Personal Accident product
• Cover legal foreign maids
• Premium: RM60 to RM95 per year
• Up to RM30,000 SA on accidental death and TPD
• Reimbursement of medical expenses due to accidents
• Weekly hospital income benefits
• Reimbursement of repatriation expenses of the insured maid following accident, disease, death or total disablement
• Reimburses third party on accident or damage due to negligence of the maids
• Policy term: 12 & 24 months

Target premium: RM1.2 mil in 1st year
Foreign maids in the country: 300,000

Source: Business Times, Bernama

HLTMT's 2010 target

HLTMT sets the following targets for FY June 2010:

• Contribution of RM200 mil
• Bancassurance will contribute 70%
• Family takaful: RM5 mil

It is interesting to note that HLTMT achieved RM236 mil for FY 2008, higher than the target set for 2010.

HLTMT also formed a strategic alliance with TH Travel & Services Sdn Bhd to offer Badal Haji service to their family takaful contributors. Badal Haji is an act of performing the haj on behalf of the deceased, sickly, elderly or those who are disabled.

Source: Business Times, The Star

Guidelines on syariah-compliant captive insurance

The Labuan International Business and Financial Centre (IBFC) is developing guidelines on syariah-compliant captive insurance. This could be the world's first set of such guidelines.

Labuan IBFC now has 32 captive companies and 4 rent-a-captive and targets 40 captive insurance companies by year-end. Singapore has 50 captives. Other jurisdictions for captive insurance include the islands of Bermuda and Guernsey.

Source: Business Times

Takaful Malaysia distributes through Standard Financial Planner

Takaful Malaysia signed an agreement with Standard Financial Planner Sdn Bhd for the latter to distribute its products.

Information on Standard Financial Planners:

• 1 of the 10 licensed financial advisors in Malaysia
• Operates across 7 countries
• > 300 representatives in Malaysia
• 75% of the representatives are licensed financial advisors with BNM

Some information on Takaful Malaysia:

• Aims to increase revenue by 10% through the distribution agreement
• Total assets: RM4.05 bil. Industry: RM11 - 12 bil.
• Aim to have >50% market share in terms of assets within 2 years
• Celebrate 25th anniversary in December, plan a rebranding exercise

Source: Business Times, The Edge, The Star

Progress in Transformation of Agents

The following is a summary of the various initiatives taken by insurers and their progress in transforming their agents to financial planners:

Prudential

• 1,800 out of 9,000 agents have been converted to wealth planners
• Target another 1,800 to 2,000 this year
• 40 - 50% agents to be wealth planners in next 5 years
• Average productivity of agency force: RM69,000 in 2008
• Wealth planners need to bring in RM200,000 NB annually

Great Eastern

• Target to have 3,000 Life Planning Advisors (LPAs) by 2010
• 600 LPAs at end of 2008

Manulife

• Expect 300 wealth planners by end of 2009
• Target 50% of agents (total agents: 1,500) to be wealth planners by end of 2010

Source: The Star

STMB wants to overtake Etiqa Takaful

STMB has set itself a target to overtake Etiqa Takaful as the largest takaful player in Malaysia by asset size within 2 years. STMB in the launch of one-stop Takaful myDesk with Lembaga Tabung Haji (LTH) also sets the following goals:

• Sign up 10% more contributors within 1 year
• Achieve RM1 mil contributions within 1 year

Takaful myDesk is along the concept of bancatakaful but instead of using a bank, in this case LTH is used as the distribution and service channel.

Source: Business Times, The Star

Lonpac sets targets

Some of the plans/targets set by Lonpac:

• 15% gross premium growth in 2009
• Opening of new branches, at least 5 by 2010, currently 15 branches
• New branches: Klang & Tawau (2009); Johor, Sabah & Sarawak (2010)
• Strengthening agency force, grow by 20% to 1,600 in 2009
• Improve delivery system
• Maintain market share in Fire and Miscellaneous, contributions of these 2 classes to its business stand at 43.2% and 36.7% of gross premium

Lonpac has a CAR of 176%.

Source: Business Times

CIMB Aviva sets targets

CIMB Aviva sets the following targets:

• Top bancassurance player by 2011
• Top takaful player by 2011

The company claimed to be the 3rd largest bancassurance player currently.

Some info on CIMB Aviva:

• 90% of products distributed through banks, mainly CIMB bank
• Also uses tele-marketing and direct marketing
• Will consider other distribution channels after bancassurance business pick up
• Launch of EasyLife Solutions increased sales of regular premium investment-linked

Source: The Star

AmLife targets to recruit 1,500 female agents

AmLife targets to recruit 1,500 female agents via roadshows from July to November.

Information on AmLife:

• 3,500 agents currently
• 30% growth in total premiums for FY 3/2009
• RM546 mil NB premiums FY 3/2009
• Target 10% growth in FY 3/2010
• Distribution: Agency (40%), Bancassurance (50%)

Source: The Star, Business Times 1 & 2

Manulife wants takaful licence

Manulife will apply for a new takaful licence by end of October. Malaysia recently announced that 2 new takaful licences would be granted this year.

Takaful penetration rate is currently at 7%, lower than the 40% in the conventional side.

Manulife currently has a takaful operations in Indonesia and intends to expand to the Philippines, Thailand and China.

Manulife has not decided whether it will increase its stake in the operations in Malaysia following the liberalisation.

Manulife's targets in 2009:

• New business premiums: 5% more than RM63 mil achieved in 2008
• 2 protection-related products in 2009

Source: The Star

Great Eastern's Targets

Great Eastern's targets for 2009 and beyond:

• Weighted new business premium: RM800 mil in 2009 (27% growth)
• Roll out investment-linked products in June/July 2009, focusing on protection, investment, education and retirement
• Enhance stand-alone medical products
• New branches for Seberang Jaya and Petaling Jaya in 2 to 3 years
• Banacassurance partnership with OCBC within 3 months
• 3 bancassurance products
• 3,000 Life Planning Advisory (LPA) graduates by end of 2010

Other statistics and information on GE:

• NB premium of RM629 mil in 2008
• Q1 2009 NB weighted premium: RM170 mil, Q1 2008: RM107 mil, growth 59%
• 17,000 agents
• 2.25 mil policyholders
• 2.8 mil policies in force
• Agency contributes 95% of NB
• 24 branches
• Assets > RM37 bil
• 600 LPA graduates so far
• LPA graduates' productivity is 2.5 times of the average agent

In 2008, Great Eastern set a NB premium target of RM1 bil.

Source: Business Times, The Star

Ikhlas Hajj Savings Takaful

Takaful Ikhlas launched Ikhlas Hajj Savings Takaful in Kuching today.

Product features:

• Investment-linked plan
• Protection and savings plan for the purpose of performing haj
• Entry age: 30 to 60 years
• Covers TPD, critical illnesses

Target contributions: RM3 mil in FY 03/2010.

Source: Business Times 1 & 2

HSBC's Regular Contributions Doubled

HSBC Amanah Takaful targets to contribute 20% of HSBC Amanah Malaysia Berhad's revenue by 2011. Its current contribution is insignificant.

New regular contributions for the takaful operator had doubled to RM30 mil from RM15 mil recorded 6 months ago. The operator has also turned profitable recently.

Other statistics and facts:

• Sales of investment-linked products declined 32.6% in 2008
• Sales of savings and protection plans grew 19.1% in 2008
• May enter into bancatakaful partnerships with banks other than HSBC in future
  

Meanwhile a survey by HSBC Insurance showed that 2 of the most specific long-term wealth aspirations for Malaysians are in retirement and education funding.

At the bank side, HSBC Bank announced last week that it had started offering marine cargo insurance.

Source: The Star, Business Times 1 & 2

RM50 mil target for Perfect Series

HLA is targeting RM50 mil premium for its Perfect Series product for 2009.

The company achieved 45% growth in its regular premium business up to end of April.

Source: Business Times 1 & 2, The Star

Syariah adviser on MAA Takaful's board

MAA Takaful has a syariah adviser on its board and thinks that this will give it competitive advantage.

Facts on MAA Takaful:

• 15,000 agents, only 30% are active
• Focuses on investment-linked business
• 13% market share in investment-linked
• 10% market share in single contribution business
• Targets 35% growth in regular investment-linked new business

Source: The Star

ING's 3-Year Profitable Growth Plan

ING has set a "Three-Year Profitable Growth Plan" strategy in early 2008. Among some of the goals are become top player in specific segments such as :

• Life insurance
• Employee benefits
• Bancassurance

Some of the results so far and targets for this year:

• NB premium grew 26% in 2008, same target in 2009
• Market share reached 11% in 2008, in 2007 it was 9%
• 40% market share in employee benefits

ING has 9,000 agents and Public Bank is its bancassurance partner.

Source: The Star

LPI expects claims ratio to be in control

LPI does not expect a sharp spike in its claims ratio, which can occur during poor economic conditions. However demand for marine insurance may drop due to the reduction in import and export trade.

LPI has limited exposure to equties and it was unaffected by the bearish stock market.

Source: The Star

Manulife targets positive growth

Manulife targets a positive growth in 2009 despite gloomy economic outlook.

Some statistics on Manulife:

• 1,500 agents, target to increase by 600 to 800
• Agency contributed 73% of group's revenue in 2008
• > 270,000 policyholders
• Suffered in ILP and fund management in the last 6-8 months
• Had more demand for protection products

Source: Business Times

Ikhlas Big Bike Takaful

Takaful Ikhlas has launched Ikhlas Big Bike Takaful and is targeting RM2mil in contributions for FY 31/3/2010.

Product features:

• Covers superbikes of 500cc and above.
• Coverage on loss of life or damage to the machines due to accident or theft.
• Provides assistance in case of any breakdown.

There are about 9,000 big bikes in Malaysia.

Source: The Star

Takaful Ikhlas to reduce reliance on motor

Takaful Ikhlas is targeting its gross contributions at RM600 mil for 2010. This will be achieved by increasing contributions from family takaful and reduce general takaful contributions from motor.

Other relevant information:

• RM520 mil was targeted for FY 31/3/2009. Results out soon.
• Achieved RM428 mil contributions in FY 31/3/2008.
• Family:General mix = 80:20
• Motor forms 70% of General Takaful portfolio, target to reduce to 50% by 2011

Source: Business Times

AmAssurance targets 10pc growth

AmAssurance is targeting 10% growth in its life and general businesses this year, after enjoying 30% growth last year.

Statistics on AmAssurance:

• 2 mil policyholders, 100,000 new policyholders last year
• Premiums FY 03/2009: RM450 mil (life), RM580 mil (general)

AmAssurance is also supplying HP Mini 1109 notebooks to its life top 500 agents to increase cost efficiency.

Source: Business Times

INGeasi for Family

ING has rolled out INGeasi for Family, the latest in the series, after launching INGeasi for Women in July last year. The latest product is expected to bring in RM50 - 60 mil.

INGeasi for Family comprises of protection, health, education and investment.

ING targets RM830 mil new premiums in 2009, lower than RM870 mil achieved in 2008.

Source: Business Times

Jerneh targets 10% growth

Jerneh targets a 10% growth for 2009, lower than the 15% growth achieved in 2008.

Other business facts:

• 2 large business segments: properties (40%) and motor insurance (30%)
• 3% market share in motor insurance
• Partners with AAM for its newly-launched product AAMJ2U, which provides 24 hours' accident assistance, post-repair inspection, 12 months' warranty on repair, fast claim approvals, door-to-door insurance, road tax service

Source: Business Times 1 & 2

Super Fortune

MAA has launched an endowment plan, Super Fortune Plan, and targets RM100 mil premium within a year.

Product features:

• Entry age: 10 to 55 years
• Guaranteed annual cash payments (GACP) from end of 10th policy year
• At maturity, 120% of SA is payable
• TPD up to age 60 and Death benefits are provided
• Premium payments can be completed in 6, 10, 15 or 20 years
• Maturity age: 50 for entry age 10 - 20, 4% GACP from end of 10th year
• Maturity age: 60 for entry age 21 - 30, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• Maturity age: 70 for entry age 31 - 40, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• Maturity age: 80 for entry age 41 - 55, 4% GACP (10th - 19th yrs), 6% GACP (>=20 yrs)
• SA starts from RM25,000
• Riders are allowed
• Sample premium: Male, non-smoker, 35, SA RM100,000, AP=RM15,540 for 6 yrs
• For more sample premium rates, please contact us

Other business targets/strategies:

• RM1 bil life insurance premium sales
• Moving away from single premium business

M&A update:

• Deal with AmBank group to be completed in 4 to 6 weeks
• General insurance unit sold for RM274.8 mil
• 4.9% of takaful unit sold for RM16.2 mil

Source: The Star, Business Times, The Edge, TAS Research

ManuCare100

Manulife today launched ManuCare100, a medical plan that covers until age 100.

ManuCare100 is expected to contribute 20% of NB premiums in 2009. In 2008, medical plans contributed 10% of NB premiums for Manulife.

Source: The Star

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

eTiQa Takaful to hit RM1.4 bil contributions

eTiQa Takaful is targeting RM1.4 bil contributions for FYE 30 June 2009, after achieving RM1.0 bil a year earlier. eTiQa claimed to be the largest takaful operator in the world.

The business mix is 70% family and 30% general.

Source: Bernama

TM Asia grew strongly in East Malaysia

TM Asia Life relocated its Sibu branch this week, after relocating the KL main office and Butterworth branch last year. In the pipeline is Kota Kinabalu branch.

Some business statistics:

• East Malaysia contributed 35% of total new business premium at 63% growth rate in 2008
• Target new business premium for East Malaysia in 2009: RM40 mil
• 7,300 customers in Sibu, target to double that in 2 years
• TM Asia Life aims to be 1 of the top 5 players by 2011

Source: TM Asia's Press Release

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

Centennial Wonder

Great Eastern launched Centennial Wonder last week.

Product features:

• Limited-pay endowment
• Guaranteed annual income for 25 or 35 years
• Sales period: 2 months from 16/2/2009

Other business statistics:

• NB sales (total premium) in 2008: RM975 mil, 30% growth over 2007, boosted by Centennial Max, SP ILP
• 4 to 5 products planned for 2009, including retirement plan and revamped medical plan

Source: Business Times 1 & 2

30% Growth Target for STMB

Syarikat Takaful Malaysia Berhad has set an ambitious 30% growth target despite the gloomy economic environment.

Source: Business Times

No concrete merger plan for HLA yet

HLA confirmed that it was not in talks with Tokio Marine & Nichido Fire Insurance Co. on potential disposal of stake to the latter. HLA's capital adequacy ratio was also comfortably above 130%.

However, HLA would consider strategic tie-up and had been approached by several companies although nothing was concrete.

HLA is targeting 3% gross premium growth for FYE June 2009.


Source: Business Times 1 & 2, The Star

PruBSN to open 7 new branches

Prudential BSN Takaful Bhd (PruBSN) will open 7 new branches in 2009 costing RM1 mil each. The branches will be located in state capitals.

Some business statistics:

• Total new regular contributions of RM340 mil (95% family takaful, 5% general takaful)
• 35% market share in NB growth
• 200 staff, 9,000 agents
• 70% agents non-Muslim
• 190,000 takaful participants (34% non-Muslim)

A new product called PruBSN ASAS will be launched in Q1 2009.

Source: Bernama

MSIG Keen on M&A

MSIG Insurance (M) Bhd is keen to pursue M&A strategy in Malaysia. The company acquired Aviva Insurance Bhd 2 years ago and does not rule out further acquisitions.

Other information on MSIG:

• No. 1 market share in marine cargo insurance (22.2%)
• No. 1 market share in Fire insurance (10.6%)
• Distribution channels: agency (35%), direct business (23%), motor business (14%), broker business (9%), bancassurance (7%)
• Gross premiums: RM710 mil (2007), RM702 mil (2006)

The current CEO, Song Yam Lim, will retire end of the year and Executive Director, Kenichi Fukuhara, will take over as the new CEO effective 1 Jan 2009.

Source: The Star

ING registered strong growth

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

ING's other business targets and performance:

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

Source: Business Times 1 & 2, The Star

Kurnia to reduce reliance on motor insurance

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

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

Source: Business Times