News Digest 20100203-20100223

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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 ...

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

Local entity may buy Pacific Insurance

Pacificmas has a good chance to dispose of its general insurance unit, Pacific Insurance, to a local unnamed entity. The entity is said to be willing to accept PacificMas' asking price and the deal is pending approval from BNM.

Other information on Pacific Insurance:

• Book value as at 31/3/2009: RM123 mil

Under BNM's regulations, a company can only operate 1 insurance licence in Malaysia. OCBC owns Overseas Assurance Corporation (OAC) and Pacific Insurance in Malaysia. The deadline is October 2009 to dispose of Pacific Insurance or merge the 2 insurance entities.

Related stories: PacificMas' negotiations with other parties.

Source: Business Times

Decision in August

OCBC Bank will decide in August whether to merge Pacific Insurance (Pacific) with Overseas Assurance Corporation (OAC) or to sell off Pacific. The decision is needed to be in compliance with MoF's requirements of not owning more than 1 insurance licence.

OCBC owns 61.7% of PacificMas since April this year.

Source: The Edge Daily

MoF Approves PacificMas Acquisition

Ministry of Finance (MoF) has given approval to OCSB to acquire up to 100% of PacificMas subject to the conditions:

• OCBC to resolve its holdings of 2 general insurance licenses, viz. Pacific Insurance and OAC within 18 months.
• In the event of a merger of Pacific Insurance and OAC, to reduce its holding to not more than 51% of the merged entity, within 18 months.

[LATEST NEWS] The OCSB's offer has become unconditional following acceptance of offer resulting in OCSB's holdings exceeding 50% on 25 March 2008.

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/48256E5D00102DF44825741300341644/$File/press%20release%20MOF%20approval%20210308[1].pdf