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 ...

News Digest 20100110-20100116

Insurance News It is TM Asia's turn to say that they want to double their premiums, but this time it seems to be a target set for only Sabah or the most for East Malaysia. The company also wants to be 1 of the top 5 in 2 to 3 years' time mainly through its agency force. http://bit.ly/6BDdfE

TM Asia Life aims to double premium
TM Asia Life Malaysia Bhd, which has embarked on an expansion plan in East Malaysia, hopes to double new business premium with the opening of its new premises in Kota Kinabalu. The company, with a strong ...

Insurance News Vincent Kwo is now COO for MAA. http://bit.ly/8O41Hb

MAA appoints chief operating officer
MALAYSIAN Assurance Alliance Bhd (MAA) has appointed Vincent Kwo Shih Kang as chief operating officer from January 2. Kwo, 49, graduated from City University, London, in 1982 where he obtained a Degree ...

Insurance News AXA Affin does not rule out acquisition to achieve its 8% market share target. Our view is that this may in fact be a more feasible route given that doubling the premiums every year is not an easy task at all. Perhaps AXA should explore with UOB and see whether the latter has intention to sell its insurance units in Malaysia? http://bit.ly/6dFGcH

AXA Affin not ruling out acquisitions, partnerships
AXA Affin Life Insurance Bhd hopes to grow its share of the local life insurance market from 1.5 per cent to 8 per cent by 2012, as it undertakes a AXA global branding exercise.Its chief executive officer ...

Insurance News It is unusual to have an Islamic bank that doesn't have any takaful operations to comment on takaful. OCBC Al-Amin commented that the growth of takaful lagged behind Islamic banking. Great Eastern, which is owned by OCBC, is believed to have applied for 1 of the 2 new takaful licences to be issued this year. GE has also recruited the ex-CEO of Prudential BSN to enhance its chance of getting the new licence. http://bit.ly/6hKEVH

Malaysian takaful growth lags banks
Growth in Malaysia’s takaful Islamic insurance industry has lagged the sharia banking sector as insurers struggle to find a home for premiums and players lack distribution channels, Singapore’s ...

Insurance News AXA Afiin Life needs to double premiums to be top 5 player by year 2012. http://www.actuaries.com.my/news/2010/01/axa-affin-life-needs-to-double-premiums.html

Insurance News: AXA Affin Life needs to double premiums
www.actuaries.com.my
Axa Affin Life has a huge target to achieve by year 2012. It has to grow its market share from the current 1.5% to 8%, to be among the top 5 in the industry. Its NB premium was RM162 mil in 2009, the target set for 2010 is RM320 mil and RM100 mil for total premiums and weighted premiums respectively...

Insurance News Dedicated to all our readers who are insurance agents. http://www.youtube.com/watch?v=ysA-wtl8-YI&feature=autofb

Insurance agent - Bangkok Life advertisement
Bangkok Life Assurance advertisement

Insurance News CIMB Aviva Takaful launched EasyLife Takaful Series and expects to secure contributions of RM35-40 mil. The takaful player aims to increase its market share from the current 2-3% to 5% in 2 years time. There are currently 8 takaful players in the market with 2 new licences to be issued soon. http://bit.ly/6nmFtQ http://bit.ly/6p0TRW http://bit.ly/5Q3TlO

CIMB Aviva aims for 5pc market share
CIMB Aviva Takaful Bhd is looking to increase its market share to five per cent in two years in line with the steady growth of the takaful industry, chief executive officer Muhammad Fikri Mohamad Rawi ...

Insurance News CIMB Wealth Advisors which started distribution for AIA since March 2009 secured RM7.6 mil premium in 2009. It sets a target of RM25 mil for 2010 planning to tie up with more insurers after obtaining its financial advisor licence. http://bit.ly/6ceiyR

CIMB Wealth sees RM25m premiums
CIMB Wealth Advisors Bhd aims to secure RM25 million premium this year from insurance and takaful products, chief executive officer Tan Beng Wah said today.The company managed to secure RM7.6 million premium ...

News Digest 20100106-20100113

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Prudential buys UOB Life

Prudential will pay S$428 mil to buy UOB Life. As part of the deal, United Overseas Bank (UOB) will also sell Prudential's life, accident and health insurance policies for 12 years at the bank's branches in Singapore, Indonesia and Thailand.

What will happen to Uni.Asia, which UOB also has a stake in?

Source: The Edge Singapore

News Digest 20091116-20100106

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No strained ties between shareholders in MCIS Zurich

MCIS Zurich denies that there is strained ties between the 2 major shareholders: Koperasi MCIS Bhd, which owns 43.69%, and Zurich Asia Holdings Ltd, which owns 40% of MCIS Zurich.

Zurich Asia Holdings Ltd is also not selling its stake in MCIS Zurich, according to CEO of MCIS Zurich.

Earlier, Business Times reported the alleged strained relationship due to the following:

• Zurich FS' proposal of selling 30% of MCIS Zurich to EON was blocked by Koperasi as Koperasi will lose its control on MCIS Zurich. The EON deal would improve MCIS Zurich's market share as EON Bank is currently giving its bancassurance business to Uni.Asia
• Zurich FS did not support Koperasi's proposal to apply for the new takaful licence unless Koperasi was willing to lose its control on MCIS Zurich
  

Source: The Star 1 & 2, Business Times 1 & 2

Uni.Asia's distribution strategy

Uni.Asia says it is on multiple distribution strategy and is stronger in alternative distribution than in tied-agency system.

Uni.Asia currently has 4 bank partners and is looking for more bancassurance tie-ups. Products are claimed to be tailor-made after analysing profile of banks' customer base. The market share of the company in regular premium bancassurance products is claimed to be 36%, ranking number 1 in the industry.

The company has also expanded its other sales channels such as telemarketing, direct marketing and worksite marketing.

Source: Business Times

Uni Guaranteed Cash Plus

Uni.Asia sets a target of RM260 mil NB premium for FY 3/2010:

• RM100 mil for RP
• RM100 mil for SP
• RM60 mil for credit related and others

Other information on Uni.Asia:

• 37% market share in bancassurance business
• 88% growth as of 8/2010
• Target growth: 85% in FY 3/2010
• New product launched: Uni Guaranteed Cash Plus (UGCP):
• RM100 mil premium targeted: RM30 mil from agency, RM100 mil from other channels

Source: Business Times

Uni.Asia General new CEO

Uni.Asia General is tipped to have a new CEO, and the candidate is tipped to be David Tan from MAA. David is currently the EVP for General Corporate Client and Schemes for MAA.

Information on Uni.Asia General:

• Gross Premiums: RM410.4 mil (FY09) vs RM349.5 mil (FY08), growth: 17.4%
• Market share: 3.7%
• Rank: 10th
• Pre-tax loss: RM5.8 mil (FY09), pre-tax profit: RM24.1 mil (FY08)

Earlier posts: Uni.Asia General CEO resigns, New COO for Uni.Asia General

Source: The Star

Uni LifeIncome

Uni.Asia launched Uni LifeIncome with the following product features and design:

• 5% guaranteed cash payment up to age 88 (5% of sum assured, not total premiums paid)
• Covers death, TPD
• Waiver of premium during critical illness
• Entry age: 14 days to 60 years
• Option of premium payments ranging from RM25,000 to RM300,000 (what does this mean???)

Target premium: RM5 mil in 1st year

Source: Bernama

Uni.Asia partners UOB

Following the financial liberalisation, Uni.Asia and UOB are the 2nd group to announce bancassurance venture. Great Eastern and OCBC made similar announcement last week.

Some details:

• New business premium target: RM350 mil over 2 years, from Gain Assure II
• Uni.Asia ranked 2nd in bancassurance NB regular premium in 2008, aims to be No. 1 in 1H 2009

Interestingly, Great Eastern sets RM18 mil bancassurance NB premium target for 2009 with OCBC.

Information on Gain Assure II:

• 10-year SP Par endowment
• Minimum income bonus of 3.5% p.a.
• Premium: RM5,000 to RM500,000
• Entry age:14 days to 60 years

Source: Business Times, The Star

Resignation of 3 CEOs

3 insurance CEOs have recently resigned:

• Cliff Lee, Tahan Insurance Malaysia Bhd
• Vincent Kwo, AXA Affin Life Assurance
• Mohd Fauzi Yaakub, Uni.Asia General Insurance Bhd

Cliff Lee was also PIAM's chairman previously. The position has been taken over by the then deputy chairman Mohd Yusof Idris, CEO of Oriental Capital Insurance Bhd.

Some industry statistics:

• Gross premiums for GI: RM11.32 bil (2008) vs RM10.45 bil (2007), growth rate: 8.37%
• NB premiums for Life: RM7.13 bil (2008) vs RM7.6 bil (2007), growth rate: -6.2%

Source: The Star

Uni.Asia's Deal Off

DRB-HICOM and OSK have mutually agreed to cease all negotiations in relation to the disposal of the entire 51% equity interest in Uni.Asia Capital Sdn Bhd of DRB-HICOM to OSK.

The 2 companies commenced negotiations on 10 October 2007.

Source: Bursa Malaysia

New COO for Uni.Asia General

Mohd Fauzi Yaakub is now the new Chief Operating Officer of Uni.Asia General.

He was previously the senior general manager of the corporate services division with responsibilities over day-to-day operations of branches, marketing and corporate communications, IT, compliance assurance, legal affairs and recovery, property and general administration.

He joined Uni.Asia General in July 2000 as chief internal auditor.

http://biz.thestar.com.my/news/story.asp?file=/2008/4/2/business/20816861&sec=business