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