Writ of Seizure and Sales against HLA

Hytex Integrated Berhad has obtained a Writ of Seizure and Sales against Hong Leong Assurance. The claimable amount is RM30.4 mil plus 8% interest. The amount is for a disputed fire insurance claim.

Hytex is a sports goods manufacturer for international brands such as Nike and Puma.

Earlier it was reported elsewhere (not this blog) that the office of HLA was "seized and sealed" which was inaccurate.

Source: Bursa 1 & 2, Sinchew 1, 2, 3 & 4

Agents see opportunities in times of crisis

Opportunities are aplenty even during times of crisis. The top agents of Hong Leong Assurance Berhad (HLA) certainly of no doubt about this. Some of the opportunities mentioned and some food for thought for aspiring agents out there:

• Protection is paramount in times of crisis
• Economic downturn is only temporary, financial planning is long-term
• Good time to recruit top-quality agents especially those who are retrenched or can't find a job

Source: The Star

Insurance Companies Strategies in Facing Crisis

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

Allianz Malaysia Bhd

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

Manulife

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

Hong Leong Assurance

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

Source: The Star

HLA Promise Looks Promising

HLA has given assurance that it is not affected by the current financial crisis as almost all its assets are locally invested.

HLA's new product, HLA Promise, has also exceeded RM50 mil in annualised premium in less than 3 months.

Source: Business Times

HLA's Strategies

Hong Leong Assurance Bhd (HLA) has come up with strategies to strengthen its life and general insurance businesses:

• Distribution: Increase number of quality agents, more comprehensive training programmes. Leverage on Hong Leong Bank for bancassurance and introduce insurance specialists in bank by early next year.
• Products: Innovation. Premier Cash, AUD Guaranteed Income Savers Plan and HLA Promise had done well.
• Enhancement of customer experience: Continue to improve systems and procedures
• Strengthen personal lines of GI: Focus on PA, home fire and content to increase underwriting profits

Some statistics:

• Market share: Life (6.3% ), General (4.4%)
• Rank: Life (6th), General (7th)
• Agency: 4% of industry agency force
• Life regular premium: RM140 mil compared with RM77 mil a year earlier
• GI underwriting profits: RM20.8 mil (FY2008) vs RM14.8 mil (FY2007)

Sourcve: The Star

FY 2008 Results - Hong Leong Assurance

For the FY June 2008, Hong Leong Assurance (HLA) posted a lower pre-tax profit of RM105.7 mil, compared with RM117.5 mil in FY 2007. HLA attributed the results to the poor market performance.

Other facts:

• Revenue: RM1.49 bil (2008) vs RM1.43 bil (2007), growth: 4%
• Gross premium: RM1.21 bil (2008) vs RM1.17 bil (2007)
• Life gross premium: RM782.1 mil (2008) vs RM740.1 mil (2007), growth: 5.7%
• General gross premium: RM425.8 mil (2008) vs RM433.4 mil (2007). Reason: tighter risk management, better underwriting profit.

Business performance/strategies:

• Overwhelming response to new product: Premier Cash
• Increase life agency force from 3,000 to 4,000 in FY 2009
• Distribution: to leverage on Hong Leong Bank's wide network of branches

Source: Business Times

HLA Promise

HLA has collected RM10 mil in premiums since the soft launch on 14 July of its new product HLA Promise.

Product Features:

• Participating endowment providing S.T.A.R. benefits:
• S: Savings - guaranteed lump sum at maturity
• T: Total Protection - TPD & death benefits
• A: Assured Income - guaranteed increasing regular cash payments
• R: Reinforced Benefits - Option to continue receiving cash benefits until maturity in event of TPD, Critical Illness (CI) or Death (double payment in the event of CI)
• Entry age: 1 month to 55 years
• Minimum sum assured: RM20,000
• Flexible payment period: 6, 8 and 10 years

Other statistics on HLA:

• Regular premium sales grew 154% for FY 2008
• Life insurance customer base: 350,000

Source: The Star, Business Times & TAS Research

AUD Guaranteed Income Savers II

Hong Leong Assurance has come up with Series II of its AUD Guaranteed Income Savers product, to be distributed through Hong Leong Bank.

Product features:

• 4 year non-participating endowment plan
• 100% capital guaranteed at maturity
• Initial investments from RM30,000
• Offer period: 17 July - 4 August 2008
• Fund size: RM36 mil
• Guaranteed annual income of up to 7.55%
• Death benefits of up to 235% of annual premium paid

Series I that was launched in May 2008 exceeded initial target fund size of RM42 mil within 8 days and the fund size was increased by RM36 mil.

In Australia, fixed deposit interest rate for term of 24 months can be as high as 8.3% p.a.

Source: Hong Leong Bank, HLA & TAS Research

Hong Leong Bank Offers Cancer Protection Plan

Hong Leong Bank Berhad (HLB) launched Hong Leong Cancer Protection Plan (HLCPP) and expected 1,500 to 2,000 cases in the next 12 months.

HLCPP has 3 different packages and is underwritten by Hong Leong Assurance Berhad (HLA). The product is a non-par plan that provides cancer cover from early to advanced stage.

Hong Leong targets RM250 mil in both conventional and takaful insurance premiums this year.

http://biz.thestar.com.my/news/story.asp?file=/2008/3/14/business/20640519&sec=business