Friends Provident rejects takeover offer

Friends Provident rejected a £1.7 billion takeover offer from Clive Cowdery’s Resolution Ltd as the offer was too low.

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

Treat customers fairly in bonus reduction

Several insurance companies in UK have cut bonuses lately due to the weak investment performance, falling asset values and low interest rates:

• Friends Provident: cut up to 20%
• Norwich Union (owned by Aviva): cut up to 15%

Market Value Reductions are also applied to surrender values.

FSA has reminded insurance companies to treat customers fairly in the bonus reduction.

It is likely that some insurance companies in Malaysia will also reduce bonus rates in this round of bonus declaration.

Source: Insurance Daily

AmAssurance Surrenders Composite Licence

AmAssurance will surrender its composite insurance licence from 1 December 2008 with creation of 2 separate entities: AmLife Insurance Berhad and AmG Insurance Berhad carrying out life insurance and general insurance respectively. AMAB Holdings Sdn Bhd is the new holding company for these 2 entities.

Meanwhile IAG will increase its holding in AmG from 30% to 49% and dispose off its 30% holding in AmLife to Friends Provident. The transaction prices are:

• 19% of AmG: RM141 mil
• 30% of AmLife: RM170 mil

Source: Bursa Malaysia

Friends Provident Keen on Malaysia

Friends Provident is keen to enter the Malaysia life insurance market. However there is nothing currently on their radar.

We reported back in March 2008 that Friends Provident was interested in acquiring IAG's 30% stake in AmAssurance life business.

Source: Business Times

IAG Plans to Dispose Stake in AmAssurance Life

IAG plans to dispose of its 30% stake in AmAssurance life business, the potential buyer is Friends Provident, although the latter is itself a potential takeover target of US private equity firm JC Flowers & Co.

It was reported that IAG would focus on general insurance business by increasing its stake in AmG Insurance from the current 30% to 49%. IAG bought the 30% stake in 2006 for RM193.2 mil.

http://www.btimes.com.my/Monday/OurPick/am24.xml/Article