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 ...

4 parties interested in Pacific Insurance

The Edge Weekly reported that there were 3 foreign and 1 local companies interested in acquiring Pacific Insurance. No names were mentioned in the report however.

Source: The Edge (not available online)

Pacificmas talk rejected

For an undisclosed reason, BNM has rejected Pacificmas' application to commence talks with a local party (undisclosed identity) for the disposal of The Pacific Insurance Bhd.

Earlier story

Source: The Star

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

PacificMas ceases negotiations with Usaha Tegas

Pacificmas announced that it has ceased negotiations with Usaha Tegas Sdn Bhd on the proposed disposal of The Pacific Insurance Berhad.

At one stage, Pacificmas was in negotiation with 4 parties (Aureos Capital Bhd, EON Bank Bhd, ACE and Usaha Tegas). Even earlier, OSK was involved. All negotiations apparently have ceased. So what is the plan going forward?

Source: Bursa Malaysia, TAS Blog

PacificMas ceases talks with Aureos and EON

PacificMas has ceased all negotiations with Aureos Capital Ltd and EON Bank Bhd on the disposal of its stake in The Pacific Insurance Bhd.

It is believed that the only party left in negotiation with PacificMas is Usaha Tegas Sdn Bhd.

Source: The Star

EON Bank Interested in Insurance Company

EON Bank targets to buy an insurance company by mid 2009. It is currently in discussion with at least 3 insurance companies on possibility of acquisition. One of which is Pacificmas.

Source: The Star

Pacificmas ceases negotiations with ACE

Pacificmas has ceased all negotiations with ACE Group of Companies including ACE Synergy Insurance Berhad in the proposed disposal of the entire issued and paid-up capital of The Pacific Insurance Berhad.

It is understood that Pacificmas is still in negotiations with 3 other parties.

Source: Bursa Malaysia

3 More Parties Interested in Pacific Insurance

Pacific Insurance is certainly attracting a lot of potential buyers. In addition to Aureos Capital Limited (see our previous post), there are now 3 other parties that have expressed interest:

1. ACE Group of Companies including ACE Synergy Insurance Berhad
2. EON Bank Berhad
3. Usaha Tegas Sdn Bhd.

PacificMas has received BNM's approval to commence preliminary negotiations with the above parties concurrently.

Source: Bursa Malaysia

Aureos Capital Interested in Pacific Insurance

Pacific Insurance has a new potential owner. Aureos Capital Ltd has obtained BNM's approval to start preliminary talks with PacificMas Bhd to acquire Pacific Insurance.

According to Aureos Capital's website, they are "a leading global private equity fund manager focusing on investments in small to mid-cap enterprises in emerging markets worldwide".

Source: The Star

Pacific Insurance will still be Sold

Pacific Insurance is still available for sale even though the negotiation with OSK has ceased. The negotiation was called off because of the disagreement in pricing.

PacificMas has until October 2009 to sell off Pacific Insurance. Currently both local and foreign companies have expressed interest in acquiring Pacific Insurance. Not all are from insurance industry but all have exposure to the financial sector.

Source: The Edge Daily

PacificMas and OSK Cease Talks

PacificMas Bhd and OSK Holdings Bhd have mutually agreed to cease all negotiations in relation to the proposed disposal of Pacific Insurance by PacificMas.

No reason was given for the call-off of talks.

Source: The Star

Pacific to negotiate with OSK

PacificMas has obtained BNM's approval to negotiate with OSK Holdings Bhd to dispose of all the issued and paid-up share capital of The Pacific Insurance Berhad.

Earlier posts on this story: please click on Pacific Insurance label below.

Source: Bursa Malaysia

September Deadline for PacificMas

Bursa Securities has given PacificMas until 25 Sept 2008 to comply with the Spread Requirement.

PacificMas' public shareholding spread was 16.46% as at 30 June 2008, falling short of the minimum 25% spread requirement by Bursa. The shortfall in public shareholding occurred after cash offer by OCBC.

Source: Bursa Malaysia

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

Pacmas Q1 Profit Down

Pacificmas Bhd's net profit for Q1 2008 fell 75% from RM10.9 mil to RM2.7 mil.

The main reasons were poorer underwriting results, lower net realised gains and higher provision for diminution in investments.

Currently OCBC holds 99.7% stake in Pacmas and has until 25 June to meet the 25% shareholding spread.

Source: The Edge Daily

OCBC Owns 99.7% of Pacmas

At the close of the cash offer at 5 pm on 8 April 2008, OCBC Capital has successfully owned 99.7% of Pacmas shares, made up of:

• 62.59% acquired through cash offer
• 32.63% owned by OCBC at the time of making cash offer
• 4.48% purchased in the market during the offer period

Source: Bursa Malaysia

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