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 20100203-20100223

Click this link for news digest.

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 ...

News Digest 20091116-20100106

Click this link for the news digest.

Strategies of Prudential and Great Eastern

With liberalisation announced last year, the top 2 life insurance players are strategising for 2010 and beyond:

Prudential

• Expand bumiputera agency force, capitalising on its takaful licence
• Agents to become wealth planners, provide advice based on needs and risk profile of clients
• Expand bancassurance with the right partners
• Grow investment-linked business

Great Eastern

• Improve professionalism, leadership and selling skills of agents
• Grow bancassurance following tie-up with OCBC post liberalisation
• Target younger population and new entrants to job market

Source: The Star

Great Eastern announces Q3 results

Highlights of the results:

• Q3 Profit S$33.6 mil (75% drop), redemption of GreatLink Choice contributed S$213.3 mil loss
• Q1-Q3 Profit S$368.3 mil (88% increase)
• Q3 sales (on weighted basis) fell 17% from S$227.3 mil to S$188.9 mil
• Q3 sales in Malaysia (on weighted basis) fell 18%

Source: Great Eastern

Great Eastern's growth factors

Great Eastern is counting on the following factors to further grow its business:

• Agents are better equipped with knowledge and training
• Current low insurance penetration rate, especially the younger workforce
  
• Introduction of affordable and well-rounded protection plans
• Advertising campaign to create awareness of the benefits of being insured
• Increase efficiency via IT, e.g. E-submission
• Capitalise on liberalisation thru bancassurance and establishment of new branches

Source: The Sun

Great Eastern hires takaful head

Great Eastern hired Mohamad Salihuddin Ahmad some 2 months ago to head its future takaful unit. Salihuddin was previously CEO for Prudential BSN. It is believed that his previous position in PruBSN has recently been filled.

Great Eastern is applying for 1 of the 2 new takaful licences to be awarded by BNM later this year.

Source: Business Times, TASclusive

LIAM: A(H1N1) is covered

LIAM has confirmed that all its 16 direct life member companies will be paying claims arising from hospitalisation due to A(H1N1) as well as death due to the flu.

A majority of the medical policies in the market carries exclusion on communicable diseases requiring quarantine by law. LIAM's members have decided to waive such exclusion. However the influenza will be monitored and the policyholders will be duly informed if the decision above is reversed.

Earlier Great Eastern, OAC and Etiqa announced that their medical policies cover A(H1N1).

Source: LIAM, The Star, The Edge 1 & 2, NST

ASM Actuarial Idol

ASM held its first ever Actuarial Idol Singing Competition in conjuction with its 31st Annual Dinner yesterday at Grand Millennium hotel in Kuala Lumpur.

The event was attended by 170 members. 9 groups participated in the Actuarial Idol Singing Competition. The President and the Immediate Past President were invited as the judges for the competition. However, their scores carried only 50% weightage on the final results, the other 50% was dependent on the audience response. It was no surprise to see strong support groups mainly comprising the fellow colleagues of the competition participants making loud noises during the final moment before the results were finalised.

The Actuarial Idol competition was won by Isaac Chiew from Watson Wyatt, with 2 ladies from Prudential and the trio from Great Eastern winning the 2nd and 3rd places respectively. It was a night full of fun, who dare to say that actuaries are a bunch of boring people!

Earlier that afternoon, Surinderpal Singh and Jefferey Zain each presented a professional paper to the members, one on Genetic Underwriting and the other one on Takaful.

During the dinner, ASM also paid tribute to Benny Ng, a fellow actuary who passed away in April this year.

More photos

Videos:

1. Isaac Chiew - My Way


2. All Contestants

Brought to you exclusively by TAS Search, your friendly actuarial recruitment agency

Great Eastern to dilute

The Edge Weekly reports that Great Eastern Malaysia is not to be listed but is seeking local investors to dilute its shareholding to 70%, as required by the regulations. Potential investors are EPF and PNB.

Source: The Edge Weekly (not available online)

Great Eastern mixed Q2 results

Great Eastern has a mixed Q2 results. While profit improves, new business was down compared to a year earlier.

Highlights of results (Q2 2009 vs Q2 2008):

• Profit: S$97.7 mil vs S$15.7 mil
• Strong profit was mainly due to non-par fund benefited from stock market rebound
• Life NB weighted premium: S$201.4 mil vs S$140.3 mil (30% drop)
• Singapore contributed 61% of the drop
• SP business drop 75%
• Malaysia enjoyed 53% growth in weighted NB

Source: Great Eastern

Great Eastern spends S$250 mil to buy back GLC

Great Eastern Singapore is spending S$250 mil to buy back GreatLink Choice from 18,000 customers.

GLC is a product aims to provide investors with fixed annual payouts ranging from 3.5 to 4.9% and refund of principal on maturity although both returns and capital refund are not guaranteed. The values of the GLC plans have plummeted between 40 and 80% due to the collapse of CDOs.

Source: The Strait Times

Uni.Asia partners UOB

Following the financial liberalisation, Uni.Asia and UOB are the 2nd group to announce bancassurance venture. Great Eastern and OCBC made similar announcement last week.

Some details:

• New business premium target: RM350 mil over 2 years, from Gain Assure II
• Uni.Asia ranked 2nd in bancassurance NB regular premium in 2008, aims to be No. 1 in 1H 2009

Interestingly, Great Eastern sets RM18 mil bancassurance NB premium target for 2009 with OCBC.

Information on Gain Assure II:

• 10-year SP Par endowment
• Minimum income bonus of 3.5% p.a.
• Premium: RM5,000 to RM500,000
• Entry age:14 days to 60 years

Source: Business Times, The Star

Great Eastern partners OCBC in bancassurance

Great Eastern has tied up with OCBC in bancassurance. Such tie-up of foreign-owned bank and foreign-owned insurer was not permitted before the liberalisation of the market.

2 new bancassurance products were launched: MaxMoney Plus and MaxMoney Back.

Targets set:

• MaxMoney Plus: RM12 mil by end 2009
• MaxMoney Back: RM6 mil by end 2009
• OCBC to have 10-15% market share in bancassurance in the long term

Source: The Star, Business Times

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

Insurance outlook

Summary of views of various industry players on insurance outlook in 2H 2009:

Great Eastern

• The worst is over, export industry picking up, companies started recruiting
• 2H to be better than 1H
• Expect double-digit growth for whole year
• Distribution channel and products are key growth drivers

LPI Capital

• Export and construction sectors will provide growth
• Marine and fire insurance will benefit
• Need to be prudent in underwriting and have strong claims management in view of rising motor insurance claims (bodily injury and motor theft)

Manulife

• Regardless of economic cycles, insurance performs well
• Stimulus plans are positive
• External factors may affect growth pace
• Equity markets have not stabilised

Source: The Star

Smart Portfolio

Great Eastern launched its latest investment-linked product named Smart Portfolio. Smart Portfolio consists of 4 series:

1. Smart Protection
2. Smart Investment
3. Smart Education
4. Smart Retirement

Great Eastern targets RM200 mil in 6 months for Smart Portfolio (RM150 mil for Smart Protection, RM50 mil for Smart Investment). Smart Protection and Smart Investment were rolled out today with Smart Education and Smart Retirement targeted to be launched in Q1 2010.

Premium for Smart protection starts at RM100 a month, while Smart Investment starts at RM500 a month.

Great Eastern is also working aggressively in pursuing new takaful licence.

Source: Bernama, Business Times

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

How did GE and Prudential stake up in Q1 2009?

Prudential has announced its results in Malaysia for Q1 2009 through Bernama. Its NB sales in Q1 2009 grew 17% compared with Q1 2008. This is different from 60% as reported in Prudential's website.

APE for both insurance and takaful sales for Q1 2009 was RM122 mil, for Q1 2008 it was RM105 mil.

GE reported APE for Q1 2009 of RM170 mil. Prudential advertised that it had attained the top position in Malaysia early in the year. LIAM subsequently denied that it issued any public information on the ranking of life insurance companies.

Source: The Star, Business Times

Claimant wins in court

The Sessions Court in Seremban has awarded close to RM160,000 to a claimant whose claim was rejected by Great Eastern on the basis of non-disclosure.

Summary of the case and ruling:

• Policyholder disclosed to agent and panel doctor of her suffering from heavy or prolonged menses
• Both agent and panel doctor who examined policyholder failed to note this fact on their forms
• Policyholder was diagnosed with cancer of the uterus a year after taking out policy
• Claim was rejected by Great Eastern on the ground of non-disclosure
• Court awarded RM100,000 claim plus 8% interest p.a.

Source: NST

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

Great Eastern's Investment Strategies

Great Eastern has the following investment strategies:

• Buy Singapore, Hong Kong and China
• Avoid smaller SEA stock markets such as Thailand, the Philippines and Indonesia due to lack of liquidity
• Has been adding Singapore REITs and telecommunication stocks
• Focus on telecommunication and infrastructure sectors in Hong Kong and China
• Bullish on construction and building-materials stocks in Malaysia
• Shunning South Korea and Taiwan as they are too exposed to the electronics industry

Great Eastern thinks that the bottom of the market has been seen.

Source: Business Times

Prudential buys over agents

Prudential Singapore is buying over agents from competitors by offering a 'buy-over' package. Prudential targets to recruit 2,000 agents this year, to grow its existing pool of 3,500 to 4,500 by end of the year.

The 'buy-over' package consists of payment to new recruits an average of their past 2 years' income spread over the next 24 months, in addition to the commission of their new sales. The condition is the new recruits must sell as much as they have done over the past 2 years.

Other industry statistics:

• AIA: current agency force - 4,000, targets to recruit 1,000 this year
• Great Eastern: current agency force - 2,534, targets to recruit 60 to 80 per month

Source: Strait Times

Insurers to cut bonuses

Policyholders in Singapore can expect their bonuses on endowment and whole life policies to be cut following a dismal investment performance in 2008.

Company that have decided to cut: Great Eastern
Company yet to decide: AIA
Companies declined to comment: Prudential, NTUC Income, Manulife
Company not cutting: TM Asia

Source: Asiaone

Great Eastern has new CIO

Great Eastern has a new Chief Investment Officer, Richard Lin Kwok Wing, who is former HLG Asset Management Sdn Bhd executive director and CEO. Richard took over from Chan Choong Tho.

Source: The Star

Has Prudential overtaken Great Eastern?

Prudential claimed that it had attained the top position in the Malaysia life insurance market. It captured RM659 mil new business weighted premium, compared to RM606 mil in 2007. The figures apparently include the sales figures of Prudential BSN Takaful.

Great Eastern, the leader in conventional business, does not currently have takaful licence.

Source: Business Times, Prudential

Great Eastern's Profit Halved

Great Eastern Holdings has announced a drop of 50% in profit for 2008.

Selected financial figures from 2008 results:

• Profit attributable to shareholders: $272.4 mil (2007: $546.9 mil)
• NB premiums for life insurance: $3,669 mil (2007: $2,774 mil), growth: 32%
• Market share in Singapore: 29% (2007: 22.5%)
• Market share in Malaysia: 22% (2007: 22.5%)
• Bancassurance market share in Singapore: 46%
• Total assets: $44 bil (2007: $46.5 bil), growth: -5%
• Profit before expenses from Malaysia: $183.3 mil (2007: 326.8 mil)
• NB EV for Malaysia: $109.4 mil (2007: 116.7 mil), growth: -6%
• Management and other expenses: $126.2 mil (2007: $82.3 mil), growth: 53%

Source: Great Eastern

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

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

Smart Medic and AddVantage Plus

Great Eastern launches 2 new products: Smart Medic and AddVantage Plus.

Smart Medic:

• Medical rider for ILP
• Annual limit up to RM200,000 and lifetime limit up to RM1.6 mil
• Annual limit will be increased every 5 years if no claims during the 5-year period

AddVantage Plus:

• Regular whole life ILP
• Bonus allocation totalling 50% over 10-year period

Source: Business Times

Ng Keng Hooi Joins Great Eastern

Prudential's former chairman for Malaysia Ng Keng Hooi has taken up a new role in Great Eastern Singapore as the group CEO effective 1 December 2008. He took over from Tan Beng Lee, 65, who retired recently.

Source: The Star

Great Eastern Turns 100

Great Eastern celebrates its 100th year anniversary today.

Some facts on Great Eastern:

• Started operations in Singapore on 26/8/1908
• 17,000 agents, contributing 80% of business
• 1.9 mil policyholders
• 5 qualified actuaries
• 1,500 staff nationwide
• RM33 bil in assets, 22.5% market share (in terms of asset size)
• Target new business premium for 2008: RM 1 bil, YTD July: RM600 mil

Source: The Star

News in Brief for the Week

1. Great Eastern and OCBC launched the OCBC Great Eastern Centennial Limited Edition credit card to commemorate Great Eastern's 100th Anniversary.

   Source: The Edge Daily

2. MAA Holdings chairman Tunku Tan Sri Abdullah ibni Almarhum Tuanku Abdul Rahman passed away at the age of 83.

   Source: The Star

3. Takaful Malaysia aims to capture 1/3 market share of the government housing loan scheme. Up to June 30, 2008, Takaful Malaysia has captured 20% market share. The company opened its new Treasury Business Centre in Putrajaya. A takaful desk will also be set up at Bank Islam's branches nationwide. 4 new products under wakalah concept will be launched within 2 months.

   Source: Bernama

S$69 million Exposure

Great Eastern Holdings has S$69 mil exposure to Fannie Mae and Freddie Mac. This represents about 0.16% of its total fund of S$42 bil.

Source: Channel NewsAsia

Great Eastern Targets RM1 bil

Great Eastern targets to achieve new business premiums of RM1 bil in 2008. The company had achieved the target set for the 1st half year. To promote growth, the company will focus on financial consultancy services.

Great Eastern opened its new premises in Penang on Wednesday. Penang branch brought in more than RM67 mil NB premiums in 2007 and the target for 2008 is RM84 mil.

Source: The Star

Sibu Branch for Great Eastern

Great Eastern recently opened its 3rd branch in Sarawak - the Sibu branch. The 4-storey building costs RM2.3 mil.

Sibu generated RM11.3 mil new business premium for Great Eastern in 2007, a hefty growth of 48.3% over 2006.

Source: The Star

Centennial Max Plan

Great Eastern Life Assurance (M) Bhd launched a capital protected plan called Centennial Max Plan yesterday. There are at least 2 more plans lined up for this year: an annuity plan and a medical plan.

Information on Centennial Max Plan:

• Single premium capital protected
• 5-year term
• 125% SP payable on death/TPD
• Sales target: RM100 mil
• Minimum investment: RM20,000
• Offer period: 1 month

Source: The Star

Great Eastern's Profit Drops 67%

Great Eastern's Q1 2008 net profit decreases by 67% from S$134.5 mil to S$45.0 mil.
Some detailed breakdown of Q1 2008 net profit:

• Life and general insurance operations: S$14.4 mil
• Non-par Fund: -S$29.7 mil
• Shareholders' Fund investment profit: $61.8 mil (mainly due to gain in disposal of Straits Trading)
• Fee and Other Income: S$22.3

The huge loss in the non-par fund is due to:

• Marked-to-market loss due to volatility of debt and equity market
• Increase in liability due to lower discount rate used

Tell me if I am wrong, but it seems to me that the non-par fund's assets and liabilities are not well matched, hence resulted in the loss when market moves against you. Something for Malaysia insurers to watch out for when RBC and FRS139 are introduced here.

Source: Great Eastern

Changepoint for Great Eastern

Great Eastern has selected Compuware's Changepoint solution to provide an integrated view of its IT processes.

Great Eastern will roll out the solution across Malaysia and Singapore over the next 12 months.  The company has over 3 million policyholders in the 2 countries.

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