Establishment of international Takaful holding company called off

After completion of feasibility study, Maybank has decided not to proceed with the establishment of an international Takaful holding company with Islamic Corporation for the Development of the Private Sector (ICD).

Source: Business Times

Dato' Aminuddin Md Desa returns as CEO

Dato' Aminuddin Md Desa is going back to Maybank Fortis Holdings as its CEO effective 1 Nov 2008.

Dato' Aminuddin has over 20 years' working experience in the insurance industry. He was the Chief Executive Officer of Takaful Nasional Sdn Bhd from 2001 to 2005 prior to being appointed as the Chief Executive Officer of Mayban Fortis Holdings Berhad in December 2005, a position he held until 30 November 2007.

From 1 December 2007 to 30 January 2008, Dato' Aminuddin was CFO designate for Maybank Group and he became the CFO from 31 January 2008, a position he held until 30 October 2008.

Source: The Star, Maybank & Bursa Malaysia

Fortis Insurance is still 100% Owned by Group

Fortis Group has clarified that it still maintains 100% ownership in Fortis Insurance Internation NV, after the recent sale of Fortis banking and Belgian insurance activities in Europe.

Mayban Fortis - the insurance and takaful unit of Maybank, continues to be owned by Maybank (69.05%) and Fortis Insurance International (30.05%).

Fortis Insurance International's other insurance activities:

• Wholly owned: UK, France, Hong Kong
• Joint ventures: Luxembourg, Portugal, China, Malaysia, India and Thailand

In related news, BNP Paribas has scooped up Fortis' assets in Belgium and Luxembourg after paying US$20.1 bil. BNP will get 75% of Fortis Bank Belgium and Belgian insurance operations, and 66% of Fortis Bank Luxembourg.

Source: Business Times, The Star

Maybank Calls off PT Anugrah Deal

Maybank has decided to pull out of the PT Anugrah Life deal. In our earlier post, we reported that the approval by Indonesia's MOF lapsed on 4 August 2008 and both Maybank and Panin continued to seek resolution of partnership.

Indonesia however continues to be a target market for Maybank's insurance and takaful expansion and it will continue to look for other options in developing its presence in Indonesia.

Source: Bursa Malaysia

MHinsure

Etiqa has been selected by Malaysia Airlines (MAS) to offer online travel insurance called MHinsure. MHinsure has access to 24-hour worldwide assistance provided by Mondial Assistance.

Product Features:

• Covers medical expenses, cancellations, baggage losses, delays and other travel disruptions.
• First-time claims below RM2,000 will be settled without documentation within a week.
• Premium starts from RM20 (Malaysian domestic), RM29 (Malaysia to any Asian destination), RM40 (international travel beyond Asia), RM50 (international travel to North America).

Target premium is RM20 mil for FYE June 2009.

Source: Business Times

Pesona Lady

Etiqa launched 2 non-life personal accident products: Pesona Lady and Takaful Pesona Lady. Target sales: RM13 mil in 1 year and 52,000 customers.

Product Features:

• Coverage: female cancers, ATM cash withdrawal losses, facial reconstructive surgery or dental treatment due to accident, infertility due to accident, delivery of twins, snatch theft, kidnap and abduction.
• Pesona Lady: premium starts from RM22/month
• Takaful Pesona Lady: contribution starts from RM24/month

Source: Business Times

Approval from MOF Lapses

We previously reported that Mayban Fortis was to acquire 60% of PT Anugrah Life Insurance ("Anugrah") from PT Panin Life Tbk ("Panin") and formed a partnership with Panin. The Ministry of Finance of Republic of Indonesia ("MOF") apparently set a deadline of 4 August 2008 for both parties to submit the relevant documents.

Maybank and Panin are still engaged in seeking resolution to the proposed partnership. However the approval of MOF has lapsed today.

Source: Bursa Malaysia

Etiqa to Double Profits by Next Year

Etiqa believes that the insurance industry will not be affected by the increase in oil and food prices as it is a necessity and it helps to mitigate inflationary pressures.

For FY06, Etiqa achieved gross premiums of RM3.5 bil and profit before tax of RM262.6 mil. Etiqa aims to double the profit latest by next year.

While bancassurance is one of the dominant channels adopted by Etiqa, it recognises the importance of agents. Etiqa has an agency force of 14,000.

Source: BizWeek

PT Anugrah Life Purchase Approved

The Indonesian Finance Ministry has approved the take over of PT Anugrah Life by Mayban Fortis Holdings Bhd.

Source: Business Times

Anugrah Life through Mayban Fortis

Maybank is going to acquire 60% of PT Anugrah Life Insurance, a subsidiary of PT Panin Life Tbk, through Mayban Fortis Holdings Berhad. The earlier plan was for Maybank Group to acquire directly.

The change was as a result of the regulation of the Ministry of Finance of the Republic of Indonesia which requires a foreign holding company to maintain a majority of its portfolio in insurance business should it wish to become a shareholder of a local insurance company.

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