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 20100309-20100320

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News Digest 20100223-20100301

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News Digest 20100203-20100223

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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. ...

8.5% growth for MNRB Group

MNRB is projecting 8.5% growth in revenue for FY 3/2010 comapred with 20% achieved in FY 3/2009:

• Malaysian Re: 15-20% growth compared to 20% growth in FY 3/2009
• Takaful Ikhlas: RM600 mil gross contributions for FY 3/2010 (RM580.5 mil FY 3/2009)
• MNRB Retakaful: 30% growth for overseas business

Source: Business Times, The Star

Ikhlas Hajj Savings Takaful

Takaful Ikhlas launched Ikhlas Hajj Savings Takaful in Kuching today.

Product features:

• Investment-linked plan
• Protection and savings plan for the purpose of performing haj
• Entry age: 30 to 60 years
• Covers TPD, critical illnesses

Target contributions: RM3 mil in FY 03/2010.

Source: Business Times 1 & 2

Ikhlas Big Bike Takaful

Takaful Ikhlas has launched Ikhlas Big Bike Takaful and is targeting RM2mil in contributions for FY 31/3/2010.

Product features:

• Covers superbikes of 500cc and above.
• Coverage on loss of life or damage to the machines due to accident or theft.
• Provides assistance in case of any breakdown.

There are about 9,000 big bikes in Malaysia.

Source: The Star

Takaful Ikhlas to reduce reliance on motor

Takaful Ikhlas is targeting its gross contributions at RM600 mil for 2010. This will be achieved by increasing contributions from family takaful and reduce general takaful contributions from motor.

Other relevant information:

• RM520 mil was targeted for FY 31/3/2009. Results out soon.
• Achieved RM428 mil contributions in FY 31/3/2008.
• Family:General mix = 80:20
• Motor forms 70% of General Takaful portfolio, target to reduce to 50% by 2011

Source: Business Times

MNRB posts poor Q2 results

MNRB has reported a net loss of RM13.3 mil in Q2 or RM7.55 mil loss in H1 on higher revenue. Reasons of the poor performance are:

• Higher reinsurance claims due to disasters: heavy snowstorm and earthquake in China, floods in Jakarta, cyclone in Myanmar and storms in Europe
• Additional provision for diminution of investments in quoted securities

MNRB also dismissed rumours that its wholly-owned Takaful Ikhlas has attracted bids from three companies, as reported by the Malaysian Reserve.

Meanwhile, Takaful Ikhlas continues to deliver strong results with a net profit of RM6.35 mil, up from RM2.67 mil.

Source: The Star, Business Times

Foreign parties interested in stake in Takaful Ikhlas

The Malaysian Reserve reported that 3 international insurers and an international bank are interested in acquiring a stake in Takaful Ikhlas. However, MNRB has not made a decision on the sale of a stake in Takaful Ikhlas yet. Takaful Ikhlas is looking for a foreign partner that can help it to expand overseas.

Source: Reuters

RHB Islamic Ties Up with 2 Takaful Operators

RHB Islamic has tied up with Takaful Ikhlas and MAA Takaful to distribute products of the two takaful operators.

Source: Business Times

Takaful Ikhlas Eyes 20% Market Share

Takaful Ikhlas which current has 11% takaful market share is aiming to achieve 20% market share in 2010.

In FYE 31 March 2008, the company collected RM428 mil contribution. For FY2009, the targeted contribution is RM520 mil, but this has been subsequently revised to RM600 mil.

Source: Business Times

Takaful Ikhlas to Apply for ICBU Licence

Takaful Ikhlas is planning to apply for international currency business unit (ICBU) licence in 2009. It is currently in discussion with a few parties in GCC (Gulf Cooperative Council), the Middle East and North Africa regions to distribute its family takaful products.

Source: Business Times

MNRB's Regional Plan

MNRB's main focus in the next few years will be overseas especially in takaful and reinsurance businesses:

• Takaful Ikhlas is eyeing the Egyptian (population: 70 mil, penetration rate: 1%) and Indonesian takaful markets
• Takaful venture in Egypt will be with selected partners
• Not ruling out strategic partner for Takaful Ikhlas in Malaysia
• Indonesia has no proper legislation on Islamic Insurance, potential will be tremendous once legislation framework is in place
• Reinsurance business made some inroads to Japan, the Middle East, North Africa and Eastern European countries
• Retakaful will focus in Malaysia, the world's largest takaful player

Source: The Star

MNRB Counts on Takaful

MNRB expects its takaful and retakaful businesses to drive revenue growth in the coming years.

Some facts:

• Takaful Ikhlas' gross contributions: RM428 mil (FY08) vs RM224 mil (FY07)
• Takaful Ikhlas' net profit: RM11.4 mil (FY08) vs RM1 mil (FY07)
• MNRB Retakaful profit after tax and zakat: RM1.9 mil in first 8 months
• Overseas reinsurance business: currently 18% of its revenue; target: 25% of revenue (FY09)
• MNRB's net profit: RM170.44 mil (FY08) vs RM129.47 mil (FY07)

Source: The Star

AmHigh Takaful

AM Islamic Bank has teamed up with Takaful Ikhlas to sell bancatakaful products. 2 investment-linked plans were launched recently: Single Premium (SP) and Regular Premium (RP).

Some product features:

• Minimum contribution: RM200 per month (RP), RM5,000 (SP)
• Term: 10 - 52 years (RP), 1 to 52 years (SP)
• Entry age: 18 to 60
• Death benefit: higher of NAV or sum insured
• Sum insured (SP): 125% (entry age 18 - 50) or 105% (entry age 51 - 60) of single contribution
• Sum insured (RP): 60% or 100% of total expected regular contributions
• Death benefit excludes AIDS related death
• Up to 50% of NAV invested overseas
• 2 funds: AmHigh Islamic Cash and AmHigh Islamic Equity

Sales targets: 11,000 certificates worth RM40 mil

Source: The Star & TAS Research

News in Brief

Etiqa Takaful has 10,000 agents and wants to focus on agency training. The hiking fuel prices and inflationary fears are expected to result in people less likely to consider an insurance policy.

Source: The Star

Takaful Ikhlas collected RM12.4 mil from Pahang in 2007 and is aiming for RM32.7 mil this year.

Source: The Star

News in Brief

1. Prudential and Bank AlJazira in joint venture to conduct takaful business in Saudi Arabia. More >>
2. Takaful Ikhlas provides Group PA cover for 104,480 Rukun Tetangga members and paid out RM400,000 claims so far in 2 years. More >>
3. Axa Affin Life launched an online game on balancing wealth and quality of life, with top prize of RM50,000.

Takaful Ikhlas Targets 6 Million Clients

After spending at least 1/2 hour scratching my head, I think I finally figured out what the above eye-catching news heading really mean.

My first interpretation on the heading was Takaful Ikhlas would get 6 mil clients within 12 months for its Medic Assist Takaful, which is a typical H&S scheme. The 6 mil figure would have put Takaful Ikhlas the largest insurer/takaful operator in Malaysia in terms of policy owners, overtaking the big giants including Great Eastern, AIA, ING and Prudential!

Also given the cheapest contribution for Medic Assist Takaful is RM257, 6 mil customers would bring in at least RM1.5 bil contributions, this is much higher than the 2009 target set by Takaful Ikhlas for the whole company, i.e. RM520 mil.

6 mil clients also means about 1 in 4 Malaysians would sign up for the scheme!

My conclusion is the news heading is misleading, "targets" does not necessarily mean "100% success rate". The 6 mil could be the number of unit trust investors in Malaysia (does anyone know how many unit trust investors are there in Malaysia?).

[Latest News] It is confirmed that the 6 mil clients is a mistake! An advertorial published in Business Times on 22 April confirmed that it should be RM6 mil contributions instead. This works out to be 6,000 clients per year!!!

Source: Bernama & Takaful Ikhlas

Housing Loan Scheme Promising for Takaful Ikhlas

Takaful Ikhlas is counting on the government housing loan scheme to bring in RM70 mil contributions for FYE March 2009. For FYE 2008, the scheme contributed RM40 mil.

Earlier, it was reported that for FYE 2009, the target contributions for Takaful Ikhlas would be RM520 mil. More »

Under the housing loan scheme, both family and general takaful plans are offered.

Source: Bernama

Captor for Takaful Ikhlas

Takaful Ikhlas has teamed up with Captor Retail Sdn Bhd to offer its contributors a vehicle security system at RM1,998.  The contributors will also get a free PA takaful of RM50,000 sum covered.

Takaful Ikhlas has 140,000 comprehensive motor takaful contributors.

http://www.bernama.com.my/bernama/v3/news_business.php?id=321018

Takaful Ikhlas Targets RM520 mil Contributions

Takaful Ikhlas targets to collect RM520 mil contributions for financial year ending March 2009. This compares with RM480 mil target in FYE 2008.

Syed Moheeb Syed Kamarulzaman said the target would be achieved through new business strategy and strengthening of internal resources.

Takaful Ikhlas will establish new regional offices in Kuantan, Melaka, Putrajaya and Ipoh. Currently the company has 6 regional offices and 1,009 agents.

http://www.bernama.com.my/bernama/v3/news_business.php?id=321026