Allianz introduces Income Generator

Kuala Lumpur, 17 March 2010 Allianz Life Insurance Malaysia Berhad (ALIM) today introduced Income Generator - a plan that not only provides protection, but also generates guaranteed income to customers.

The sphere of this Plan is that it offers many exceptional benefits, all in one plan. Customers from any age between 30-day old to 65 year-old can purchase this Plan and reap its benefits until the age of 90. This includes yearly guaranteed cash payment after eight years, potential monthly returns, shorter payment period of only 20 years and at the same time, it also protects customers from unforeseen circumstances of Total and Permanent Disability and untimely demise. Besides, customers can also enhance their insurance protection with other wide-range of optional benefits.

When customers purchase a plan from Allianz, we want to give them more value added services and added benefits. As a pioneer in guaranteed income plans in the Malaysian market, we believe that the Income Generator will be able to provide our customers with the assurance and peace of mind to enjoy the things that they always wanted to do - whether a quality education for children, a retreat for the family or simply a golden retirement," said Alexander Ankel, CEO of Allianz Life Insurance Malaysia Berhad.

ALIM continues to enhance the values that customers enjoy by continuous enhancement of existing lines of products and new products, providing quality solutions for risk management and long term investments. The Company also recently recorded robust financial results last year with RM868.7million in GWP interpreting a 26 percent increase from 2008. This accomplishment translates the fact that ALIM is moving towards the right direction, especially in being committed to provide the best support and services to customers.

https://www.allianz.com.my/cls/content.aspx?t=2093&m=2010

熟女賣身拚業績‧床單換保單

 

莎麗稱她當了熟女保險經紀半年，卡拉OK老闆娘當她是免費的"陪酒女郎"。（圖：光明日報）

 

光明日報    2010-03-20 19:00

1 of 2（獨家報導：羅素蘭‧柔佛‧新山）熟女靠出賣色相搶攻保險市場！本地保險界一些害群之馬近兩三年來先後引進大批年齡介於二三十歲，以及在感情上歷盡滄桑的熟女保險經紀，並安排這些熟女以陪中年男客到夜店喝酒聊天談心、到卡拉OK唱歌消遣，甚至是陪男客"上床"等方式，誘勸這些男客購買保險並簽下保單，藉此賺取傭金。

一名在保險業界活躍多年的人士向《光明日報》揭露，這些熟女保險經紀目前多是誘勸中年男客簽購一套規劃退休金的儲蓄保單。

目標多是中年顧客

這位不願具名的人士說，上述不肖保險業者在培訓了一群熟女保險經紀後，通常會要求她們先各自購買一輛豪華轎車代步，且時時穿著名牌服飾，以便為中年男客留下一個好印象。

"當然，這些熟女到處借錢或刷卡購買轎車及名牌服飾後，多會因欠下一屁股債而用盡各種方法，包括出賣色相的方式勸誘中年男客簽購保單。在這種情況下，最大的獲利者當然是有關保險業者。"

他披露，這些熟女的目標顧客多設定為那些受教育程度不高的華裔中小企業家，這是因為她們認為，這些身有餘錢但卻見識有限的小企業家較為容易"上鉤"。

"那些急需金錢周轉的熟女經紀更是為達目的，不擇手段。起初，她們只是陪男客喝酒聊天談心，或唱唱卡拉OK，但在酒熱耳酣之際，即使一些男客藉著酒意對她們'上下其手'，她們也不會拒絕。一些較為開放的女經紀更在三分醉意的推波助瀾下，以陪男客上床的方式作為條件，引誘男客簽下巨額保單。"

據他所知，大馬各地都有一些保險公司的保險經理使用上述方式來提高他們的業績，至於相關的保險公司也為了刺激業務，而以"睜一隻眼閉一隻眼"的態度，默許保險經理使用這種操作方式。

未達業績

內衣褲外穿繞場

當過半年熟女保險經紀的莎麗（化名，40多歲）披露，她當初是因為丈夫有外遇離婚，以及生意股東鬧分歧的雙重打擊，而"誤當"熟女保險經紀一段時日。在那段期間，保險業者使用各種變態方式"刺激"熟女經紀達到業績目標，其中包括要求未達業績者以內衣內褲外穿洗車或繞場、或穿上成人尿布示眾的方式自我懲罰。

她接受《光明日報》訪問時披露，她在受到婚變及生意失敗的打擊後，因想轉換跑道而打處尋找工作。

業者安排學喝酒

"過後，我在一項宴會上認識了一對從事保險業的夫婦，就這樣踏入熟女保險經紀的行列。我剛開始參加保險業的早會與表揚會時，因受到現場氣氛的影響，曾一度滿懷鬥志。

早會結束後，公司就安排我們學喝酒，因這是我們'招待'顧客的前奏。"

她說，當公司發現她們達不到業績後，就開始安排她們和另一組的經紀以一對一的方式進行業績比賽，輸的一方必須繳付1000令吉到3000令吉的"罰款"。

"此外，業者也要求未達業績者以內衣內褲外穿洗車或繞場、或穿上成人尿布示眾的方式自我懲罰。"

被酒廊老闆當免費陪酒女

當一眾熟女保險經紀在一些特定的卡拉OK活動一段時日後，那些卡拉OK的老闆就把她們當成"免費"陪酒女郎，每當卡拉OK有大商人光顧時，老闆就會美其名以"你們的顧客來了"的說法，致電要求她們過去"陪酒"。

深受其害的莎麗說，這固然是一種各取所需，互相利用的行為，但有些熟女保險女經紀也不見得每一次都願意到場陪酒，不過，她們最終都會因為不願得罪卡拉OK的老闆，而勉為其難"上陣"。

她披露，她在"上陣"一次後，就因為"無法消受"而拒絕再次"上陣"。

"這些所謂的大老闆都是醉翁之意不在酒，他們只要找到機會就會對我們動手動腳，實在令人受不了。"

拚業績損健康患憂鬱症

許多熟女保險經紀最終因承受不了業績壓力，以及無法接受"賣身賣保單"的作法，而先後健康亮紅燈，甚至患上憂鬱症，需向心理醫生求助。曾任熟女保險經紀達半年的莎麗就因為相同原因而罹患憂鬱症，不僅如此，她也因為經常"陪酒"而出現三酸酐油脂嚴重超標的情況。

"在當保險經紀期間，除了心靈受傷，我也賠上了健康，所以，我最終為了保護自己而離開保險業。"

她說，那段日子真的是一場夢魘，而她更曾因為壓力過大而患上失眠症，並依靠服食安眠藥入睡。

"其實，在我還未離開保險業之前，業者就因為我患上憂鬱症而主動叫我休息一陣子，算是變相'炒'我魷魚。"

業績亮眼獎賞出國旅遊

莎麗說，和她同時間投入熟女保險經紀行列的女性約有十多人，不過，目前只剩下兩三人繼續從事保險業，其他多因無法承受"變態懲罰"方式、出賣色相所帶來的壓力等而先後離開保險業。

"當然，有罰必有賞，公司常會安排那些業績表現亮眼的熟女經紀出國旅遊，以作為獎賞。"

她披露，那些業績亮眼的熟女經紀通常都很會向男客撒嬌，且酒量很好，又好玩，有些"口甜舌滑"的熟女經紀更嗲聲稱男客為干爹，讓那些男客為之渾身酥軟，並輕易簽下巨額保單。

應酬方式訓練能喝能玩

不肖保險業者通常是通過面試的方式，吸納那些頗具姿色、能言善道、急需金錢周轉或貪錢愛財的熟女，然後提供"飲酒作樂"的應酬式培訓課程給這些熟女，把她們訓練成"能喝能玩"的熟女保險經紀。

不願具名的保險業者披露，那些不肖業者通常會遴選那些不願付出勞力，只想賺取"快錢"或"輕鬆錢"的女郎，作為熟女保險經紀的一員。

"此外，他們也很歡迎那些失婚女子、酒廊公關、單親媽媽，或需替男友償還大筆債務的女性加入熟女保險經紀的行列，因為這些女性最可能為了金錢需要而犧牲色相。"

此外，一名傳統保險業者說，他過去曾面試一名當過熟女保險經紀的女應徵者，結果，對方竟開口要求公司每月為她支付逾2000令吉的保費，以及一筆購買避孕藥的開銷。

"當然，熟女經紀也不一定就能百發百中，一些熟女經紀就曾向同業申訴，雖然她們每晚陪那些大老闆喝酒喝得醉醺醺，但當她們較後去跟有關老闆談保單生意時，那些老闆卻翻臉不認人，令她們生氣不已。"

傳統保險業與那些以熟女出擊的業者也曾因為"道不同"而在網上掀罵戰，但因法律並未就此作出規範，所以傳統業者也無可奈何。

前經紀：聽聞賣身拚業績

現年40多歲的珍妮（化名）說，她曾銷售規劃退休金保單，但她過後因業績達不到目標而轉行。

詢及她對熟女保險經紀通過出賣色相方式推銷保單一事的看法時，她以"牛不飲水，怎按得牛頭低？"的說法予以回應。

"在保險業這一行，絕對沒有人可以強迫任何人做任何事，一般課程都只是訓練保險經紀與顧客聊天、喝茶或吃飯，並沒有任何課程是教她們陪酒或陪上床的，所以，如果真有熟女經紀通過出賣色相的方式要人簽保單，那也只是她們的個人行為。"

"其實，在我未退出這行時，我也親眼見到一些同行不靠陪唱、陪喝的方式就能闖出佳績的例子。"

對於有熟女為了達到目的，不惜出賣色相的說法，她確實有所聽聞。她披露，以她經驗來說，其實真正好色的顧客只有20%左右。

"一些顧客確實常會請我們去卡拉OK或酒廊'培養感情'，雖然我們多會赴約，但我們也會隨機應變，能閃則閃。一般上，這些顧客再大膽，程度也是有限。"

她說，她曾應酬的顧客除了本地顧客，也包括新加坡人。

前經紀：拚輸業績被罰千元

珍妮說，她本人曾因為達不到業績而被懲罰內衣外穿洗車，以及繳付1000令吉罰款，但她對此不以為意，"因為我在輸的同時，其實已簽到不少顧客的保單了。"

談到規劃退休金計劃，她簡單的舉例說，這是一種讓顧客縮短供期，讓保險經紀更快賺到更多錢的計劃。在縮短供期的計劃下，顧客每年所支付的保費就相對較高，以最便宜的保單為例，顧客每年就必須支付3500令吉左右的保費。

退休金計劃經紀賺更多

"若顧客在保障期限內死亡或在保單期滿後才提出金額，所獲得的花紅或賠償金就是一個很龐大的數字。"

公會：灌輸專業手法招客

針對熟女保險經紀"色誘"男客簽下保單的現象，現年60歲的全國保險代理員公會主席郭福安說，保險業是一門專業行業，公會向來都灌輸會員需以專業的手法來招攬客戶，這樣才能獲得客戶的尊敬與信賴。

他說，他是頭一回聽到有關熟女以出賣色相的方式招攬保客的事情。"不過，所謂一種米養百種人，各行各業當中都有可能出現害群之馬，不同的組織也可能以不同的方法去招生意。"

他強調，以公會的立場，公會當然希望會員們能遵守職業操守，所以公會絕對不鼓勵會員以不道德的手法去招攬顧客。

"保險是一門服務行業，不是今日賣出一份保單就算，而是必須長期提供服務。這個行業是要看長遠的，如果真的出現類似熟女色誘客戶的事情，相信她們也無法在這門行業長久立足。"

他希望遇到上述情況的民眾或保險代理員能向公會作出舉報，以便公會能進一步調查此事。

熟女條件

1. 28歲至30多歲左右的女性

2. 很會玩、有點姿色、嘴巴甜

3. 有企圖心、想改變、不太聰明

4. 很有人脈，讀書不多、很愛錢

5. 失婚女子、酒廊公關、單親媽媽，甚至要替男友償還一屁股債務的女性

Prudential Eyes 20 Per Cent Contribution From Education Plans

Bernama    March 12, 2010 18:05 PM

KUALA LUMPUR, March 12 (Bernama) -- Prudential Assurance Malaysia Bhd expects a 20 per cent contribution from its education plan business this year compared to 15 per cent last year.

Its chief executive officer Charlie Oropeza said bulk of the premium growth was expected to come from its latest protection plan, PRUmy child, as demand was increasing in anticipation of an annual birth rate of 500,000.

"Today's world is very challenging for expecting mothers and their unborn babies, especially during the growing up period. Thus, we believe the unique feature offered via PRUmy child will help to boost our premium growth for education plans for this year," he told reporters after the PRUmy child launch here Friday.

PRUmy child, which comes with a minimum annual premium of RM600, is the first of its kind child insurance plan that offers coverage during the crucial pregnancy and infancy periods.

It can be purchased for the unborn child as early as 18 weeks into the pregnancy, or for the child who is between one and 18 years old.

The parent must be aged between 18 and 60 to own the policy.

Apart from providing the child with an unprecedented protection before birth, PRUmy child also allows parents to further secure the child's well-being with other riders that linked into medical, accident and critical illness.

Oropeza said the new policy also allowed parents to take charge and build the child's education fund as early as possible.

At the same time, parents could opt themselves from total permanent disability, death or critical illness, whereby the benefits received would, in turn, help to either pay for future premiums or living expenses of their child, he said.

Oropeza said Prudential also hoped to continue recording strong growth in new business annual premium in tandem with the economic recovery.

"We registered a 24 per cent growth last year and intend to do much better this year," he said.

Last year, Prudential achieved a record RM817 million in new business annual premium, of which 85 per cent of the sales came from its investment-linked products.

No immediate impact on Prudential M’sia

The Star Malaysia    Wednesday March 10, 2010    BY DALJIT DHESI

PETALING JAYA: The proposed sale of American International Group Inc's (AIG) crown jewel, American International Assurance (AIA), to Prudential Plc will not have an immediate impact on Prudential's operations in Malaysia.

"The (proposed) takeover of AIA will, at the moment, have zero impact on our operations here and business is as usual for now," said Prudential Assurance Malaysia Bhd (PAMB) CEO Charlie E. Oropeza in an interview with StarBiz. "As for board changes in the company, I myself don't have a firm grasp on the changes that will happen at this stage as it is still to early to tell."

An observer with close ties to the company said it was stilll too early to talk at this stage on integration plans, adding that the acquisition would not focus on any cost-cutting measures but on growth strategy as the aim was to have a bigger market in Malaysia.

According to Oropeza, the company's 12-month goals and strategic plans would stay put despite the proposed acquisition of AIA.

He said the recent visit to Malaysia by Prudential Plc's group chief executive Tidjane Thiam and Prudential Corp Asia chief executive Barry Stowe further underscored the need for PAMB to work harder on implementing and executing plans to strengthen its business.

"He (Thiam), since his appointment on Oct 1 last year, has visited Malaysia four times as he firmly believe Malaysia is a good market for the group. The (proposed) acquisition will also see Prudential and AIA maintaining their brands and keeping their businesses and brands separate, but consumers can expect stronger and broader product range,'' Oropeza said.

AIG agreed to sell its Asian life insurance unit, AIA, to Britain's Prudential Plc last Monday for US$35.5bil in the largest insurance deal ever, paving the way for Prudential to become South-East Asia's biggest insurer.

AIA currently serves more than 20 million customers in Asia whereas Prudential has more than 11 million life insurance customers in the region, according to news reports.

Meanwhile, PAMB yesterday unveiled its latest results - a record performance that saw a 24% increase in new business sales amid challenging market conditions.

The insurer posted new business annual premium equivalent of RM817mil for the financial year ended Dec 31, 2009, compared with RM659mil registered in the same period in 2008. Its fourth-quarter (2009) performance was equally good with a significant 69% increase in new business premiums compared to the same quarter in 2008, according to Oropeza.

He attributed the strong performance to the strength of the company's agency and non-agency distribution channels, its commitment to provide innovative products to meet customer's needs coupled with the strong Prudential brand name and continued product innovation .

One of such innovation include PRUhealth, a revolutionary medical insurance plan that rewards healthy policyholders with an annual No Claims Bonus.

Oropeza said the company's systematic implementation of sales and marketing efforts to improve agency activity, which includes promoting the use of innovative point-of-sales tool amongst agents, had helped increase the average productivity of its wealth planners and agents from RM67,000 in 2008 to RM69,000 in 2009.

PAMB currently has an agency network of more than 11,000, of which 3,800 are bumiputra agents.

It recently opened two new branches in Kajang and Skudai, Johor, bringing the company's total branches to 41 nationwide.

AIG sells Alico unit to MetLife for US$15.5bil

The Star Malaysia    Tuesday March 9, 2010

CHARLOTTE, North Carolina: American International Group Inc. said Monday it will sell its American Life Insurance Co. division for US$15.5 billion to MetLife Inc.

The deal, AIG's second big asset sale in two weeks, will give the insurer more cash to repay the billions of bailout dollars it still owes the government.

The purchase gives MetLife a much larger presence in Japan and in high-growth markets in Europe, the Middle East and Latin America. American Life Insurance, known as Alico, operates in more than 50 countries.

MetLife currently offers services in 17 countries.

It also moves AIG closer to repaying taxpayers.

As of Dec. 31, the company owed the Treasury and the Federal Reserve Bank of New York nearly $130 billion.

AIG's bailout package was originally worth up to $182.5 billion.

On March 1, AIG agreed to sell Asia-based life insurer, AIA Group, to Britain's Prudential PLC for $35.5 billion.

The two units, while similar in product offerings, don't operate in the same markets in Asia.

Investors were pleased with the Alico deal, and bid AIG's shares up 4 percent, or $1.13, to $29.21 in afternoon trading.

MetLife shares rose $1.65, or 4.2 percent, to $40.57.

MetLife will pay $6.8 billion in cash for Alico.

The rest will be paid in stock and what are called equity units. AIG will initially hold an 8 percent stake in MetLife, which will reach 14 percent in early 2011 after some MetLife preferred shares are converted into common shares.

AIG's stake could reach up to 20 percent, when after the insurer receives $3 billion in equity units.

"Rarely does one come across a deal that has such a strong strategic fit," MetLife CEO Robert Henrikson said in an interview with The Associated Press.

Henrikson said MetLife has been in the market for various domestic and overseas acquisitions over the past 5 years.

He said he began discussing a possible Alico deal with AIG in December 2008, three months after the government bailout.

AIG and MetLife are based in New York.

Robert H. Benmosche, the former head of MetLife, became AIG's CEO in August. Benmosche wasn't involved in the deal discussions, Henrikson said.

All talks were handled by a special committee within AIG, he said.

The Alico deal, while good for MetLife, carries some risk, said Aite Group senior analyst Clark Troy.

"Japan is an aging society and MetLife may face challenges growing revenue," Troy said.

"However, MetLife does have the ways and means and experience to make the deal work, as they will be building on one of their stronger franchises."

MetLife currently has a successful variable annuity business in Japan.

MetLife's international business grew significantly in 2005 when the company acquired most of Citigroup's international insurance businesses, adding Japan, Australia and the United Kingdom to its portfolio.

Before then, MetLife already had operations in South Korea, Chile and in Mexico, where it is the largest life insurer.

Henrikson said he didn't consider a purchase of AIA Group because "it didn't fit MetLife's growth plans."

AIG has been working for the past year and half to sell assets and streamline operations so it can repay its government debt.

Since receiving government bailout funds, AIG has completed 21 unit sales or asset transactions, including the Alico and AIA deals.

AIG's next key sale could be Nan Shan, a Taiwanese company, analysts have said.

AIG is also continuing to address funding needs and explore options for restructuring its aircraft leasing unit, International Lease Finance Corp., and its consumer and commercial lending business, American General Finance Inc.

It is also conceivable that AIG might consider sales of its American General Life and American General Life and Accident units, Aite Group's Troy said.

The insurer is expected to keep Chartis, its larger property and casualty insurance company; two additional Japanese life insurers, and a handful of smaller, U.S.-based companies.

The cash portion of the Alico and AIA deals will be used immediately to pay down an investment in AIG by the Federal Reserve Bank of New York.

The equity portion of the deals will be sold over time to help further repay that debt.

"Both sales give AIG greater flexibility to move forward with our restructuring and rebuilding efforts," AIG Chairman Harvey Golub said in a statement.

Including the latest sale, AIG will be able to slash its government debt by about $51 billion, or 39 percent.

Before the sales of AIA and Alico, AIG owed the government $94.76 billion in loans and its outstanding government assistance totaled $129.26 billion.

All the cash and stock AIG received from selling Alico to MetLife will be used to repay the government.

AIG received $25 billion in cash from the AIA sale and another $10.5 billion in stock and equity units.

Like in the Alico sale, that stock and equity will eventually be sold to repay the government.

AIG's outstanding government debt will be around $78.26 billion once the two deals are completed and the stock and equity units in MetLife and Prudential are sold - assuming current market values for the MetLife and Prudential stakes.

Of that $78.26 billion, AIG will owe the government $43.76 billion.

The remaining $34.5 billion in outstanding assistance is tied to the value of investments the government bought from AIG.

As those investments pay off or rise in value, the government recoups more money. - AP

Kurnia Adopts New ISM-ABI System

March 08, 2010 13:56 PM

KUALA LUMPUR, March 8 (Bernama) -- Kurnia Insurans, the leading motor insurer in the country, is the first to commence using the Insurance Services Malaysia-Automotive Business Intelligence (ISM-ABI) online system, for underwriting motor insurance.

In a statement Monday, ISM Chief Executive Officer Carl Rajendram said Kurnia is using the system to provide its customers with an indicative value of their vehicle upon purchase or in renewing their comprehensive motor insurance.

"Upon theft or total loss claim for a vehicle, Kurnia Insurans will pay an agreed insured value proposed by the customer and accepted by it under this new system," he added.

The ISM-ABI is an independent vehicle evaluation system provided by Insurance Services Malaysia Bhd and approved by Bank Negara Malaysia as well as the General Insurance Association of Malaysia (PIAM).

Kurnia started using the new online system from January this year through its Electronic Cover Note (eCN) web-based system, for all its 7,000 agents nationwide.

Update: MetLife to buy AIG's Alico unit for US$15.5b

The Business Times Singapore    March 8, 2010, 8.55 pm (Singapore time)

NEW YORK - AIG is selling its foreign life insurance unit to MetLife for about US$15.5 billion, in its second major asset sale in a week to repay the US government billions of bailout money.

MetLife said on Monday that it would pay AIG US$6.8 billion in cash and about US$8.7 billion in equity for the American Life Insurance Co (Alico) unit, confirming an earlier Reuters report.

Founded in 1921, Alico sells life, accident and health insurance as well as retirement and wealth management products in more than 50 countries. The deal will help MetLife, already the largest life insurer in the United States and Mexico, to expand globally.

MetLife will get a boost in Japan, the world's second-largest life insurance market. Alico will also strengthen the company's position in Europe and move it into a top five market position in many emerging markets in Central and Eastern Europe, the Middle East and Latin America.

MetLife expects the deal to increase its 2011 operating earnings per share by 45 cents to 55 cents, excluding one-time expenses of 12 cents.

Still, such a large deal comes with its share of execution and other risks, said Clark Troy, a senior analyst at Aite Group.

Alico's strength in Japan also ties MetLife's fortunes to an aging society with a huge public debt overhang, Troy said.

'If (Japan) falters or slips back into deflation, MetLife might face challenges growing revenue,' Troy said in an e-mail late Sunday, before the deal was announced.

Fed payday

The deal comes after AIG agreed to sell its Asian life unit, American International Assurance (AIA), to Britain's Prudential for US$35.5 billion in the largest insurance sector deal ever.

The AIA and Alico deals will allow AIG to repay the US government about US$31.5 billion in cash after a US$182.3 billion taxpayer-funded rescue, with more expected as the insurer sells Prudential and MetLife securities over time.

AIG will use the US$6.8 billion in cash from the Alico deal to redeem part of the Federal Reserve Bank of New York's US$9 billion preferred interest in a special purpose vehicle that holds the unit.

The equity security portion of the price consists of 78.2 million shares of MetLife common stock valued at US$3 billion, 6.9 million shares of contingent convertible preferred stock valued at US$2.7 billion and 40 million equity units with an aggregate stated value of US$3 billion.

The common stock would give AIG about 14 per cent ownership in MetLife, while the convertible preferred is expected to be liquidated before it converts, a source familiar with the situation told Reuters on Sunday.

With the convertible preferred stock, though, AIG's stake would go above 20 per cent, several sources said.

MetLife expects to finance the cash portion of the deal with issuances of senior debt and common stock as well as cash on hand.

Both boards have approved the transaction, which the companies expect to close by the end of 2010.

Credit Suisse was lead adviser to MetLife, which was also advised by Barclays Capital, Bank of America Merrill Lynch, Deutsche Bank and HSBC.

AIG is being advised by Citigroup, Goldman Sachs and Blackstone Group, while the Fed is being advised by Morgan Stanley, according to several sources.

Shares of AIG were up 2.2 per cent at US$28.70 in premarket trading, while MetLife gained 1.3 per cent to US$39.43. -- REUTERS

Pru may exit some Asia markets post-AIA buy

The Malaysia Insider

SINGAPORE, March 5 — Britain's Prudential Plc may quit some countries in Asia should it seal a US$35.5 billion (RNM120.7 billion) buy of American International Group's AIA, sources directly involved with the deal said today, allowing the bulked-up insurer to focus on key markets.

Australia, New Zealand, South Korea and Taiwan are four markets Prudential may decide to leave due to low market share, the sources said. One source said asset sales could potentially top US$1 billion.

The sources all declined to be named as they are not authorised to comment publicly on the deal.

Prudential's planned acquisition of Hong Kong-based American International Assurance, AIG's Asia life insurance group, still has some way to go before it closes.

Today, Prudential said Singapore sovereign wealth fund GIC and Qatar Holding LLC had committed to underwriting a significant portion of its planned US$20 billion rights issue that will help fund the AIA deal.

Prudential shares were up 1.3 per cent in London by 1015 GMT.

Prudential is buying AIA as it bets on soaring demand in Asia for personal financial services. The move also allows it to swallow a top competitor that had planned to spin-off on its own from AIG through a US$10-US$20 billion Hong Kong IPO.

The deal is a transformative one, the largest-ever in the insurance industry, and one that that will immediately change Asia's insurance industry landscape.

"You can bet that a lot of strategic players and financial buyers are already positioning themselves for the coming activity," one of the sources said, referring to the potential divestments that could come from the combination.

In South Korea, Prudential-AIA would rank No.5 in terms of market share, while in Australia, it would have just 0.5 percent market share, ranked 14th, according to a person working on the transaction. In New Zealand, they would rank sixth.

"In Australia and New Zealand, AIA was focusing on independent financial adviser business, which is not the traditional agency based business that Prudential focuses on," said Sally Yim, vice president at Moody's in Hong Kong and senior analyst who covers Asia-Pacific's insurance industry.

A Hong Kong based spokesman for Prudential declined comment. An AIA spokeswoman did not return a message seeking comment.

Prudential has a joint venture in India with ICICI, a partnership that is much bigger than AIG's link-up with India's Tata Group. Tata is expected to buy out AIG's 26 percent stake or find another partner as Prudential would not be allowed to have two joint ventures in the same country.

Prudential-AIA may face a similar situation in China, where foreign companies are not allowed to have more than one joint venture partner. Citic-Prudential Insurance is a 50-50 JV with a half per cent share of China's market.

AIA in China is 100 per cent-owned by AIG, with a 1 per cent market share. While both shares are small, China is viewed as a key growth market for the combined company.

However, the Shanghai Security News reported today that new draft rules under consideration could allow the two insurers to operate separately in China.

Prudential said GIC and Qatar Holdings committed to underwriting a big chunk of the US$20 billion rights issue, news that one UK-based analyst said would ease market worries.

GIC already owns a 0.5 per cent stake in Prudential, but Qatar does not appear to rank as an existing investor, signalling the UK insurer is inviting new investors to make the deal a success.

"These investors would more than likely have pursued the original AIA IPO. If they still want that same exposure, they now only have Prudential to go to," said Sanford C. Bernstein analyst Toby Langley.

"This latent support effectively means the rights issue is underwritten at two levels. It's fully underwritten at the first level by the banks, and if these investors can underpin the deal at the second level, that's a stronger position still."

"If that's indicative of the way things are going to go, then initial fears over the rights issue look overdone," Langley said.

Prudential said in its filing that demand for primary underwriting was well in excess of the size of the rights issue.

Credit Suisse, HSBC and JPMorgan Cazenove are acting as joint global co-ordinators and joint bookrunners, it said.

Prudential said it enlisted over 30 global and Asian banks as joint lead managers, co-lead managers and co-managers for the fund raising. — Reuters

No sales charge for OCBC’s new products

The Star Malaysia    Saturday March 6, 2010

PETALING JAYA: OCBC Bank (M) Bhd is the first bank in the country to offer equity unit trust products that come without the standard sales charges of up to 5%.

OCBC Bank head of consumer financial services Charles Sik said the Pacific Elite Funds, marketed by the bank and managed by Pacific Mutual Fund Bhd, allowed investors to have equity exposure via a unit trust scheme that had no sales charge upfront.

Initially, the bank will roll-out four Pacific Elite Funds comprising three Islamic funds – Pacific Elite Islamic AsiaPac Balanced Fund, Pacific ELIT Dana Aman and Pacific ELIT Dana Dividen – and a conventional fund, Pacific ELITE Dividend Fund.

RHB, TM Asia Life in bancassurance alliance

The Star Malaysia    Saturday March 6, 2010

PETALING JAYA: RHB Bank Bhd has entered into a memorandum of understanding (MoU) with TM Asia Life Malaysia Bhd to negotiate the terms for forming a mutually exclusive 10-year bancassurance alliance in Malaysia to sell, market and promote conventional life insurance products developed by latter.

RHB Bank is a wholly-owned subsidiary of RHB Capital Bhd and TM Asia Life.

In a statement to Bursa Malaysia, RHB Capital Bhd said RHB Bank had the right to sell to any party or persons including but not limited to RHB Bank's customers under the proposed exclusive bancassurance arrangement via the bank's network of offices, branches and other alternative distribution channels jointly developed by TM Asia and RHB Bank.

Under the MoU, TM Asia Life will pay an exclusivity fee of RM100mil and RHB Bank commits to a 10-year exclusive bancassurance relationship with TM Asia Life starting from the signing of the documents.

TM Asia was established on March 9, 2007 as a result of a strategic alliance between Tokio Marine and Nichido Fire Insurance Co, Ltd and Asia General Holdings.

The company offers a complete range of insurance and investment-linked products for individuals and corporates, including protection plans, wealth accumulation plans, education plans, retirement plans, medical insurance and group insurance.

Prudential’s AIA Deal Creates $660 Million ‘Windfall’

Bloomberg    March 01, 2010, 9:03 PM EST

By Jacqueline Simmons, Zachary R. Mider and Brett Foley

March 1 (Bloomberg) -- Prudential Plc's $35.5 billion agreement to buy an Asian life insurance unit from American International Group Inc. may generate $660 million in fees for investment bankers, according to research firm Freeman & Co.

Credit Suisse Group AG, Lazard Ltd., and JPMorgan Chase & Co. advised Prudential, while Citigroup Inc., Goldman Sachs Group Inc. Blackstone Group LP and Deutsche Bank AG advised AIG, according to data compiled by Bloomberg. The banks will share in about $80 million in advisory fees, according to estimates by Freeman. Prudential's bankers may earn about $580 million for arranging bond and stock sales to finance the purchase, the New York-based research firm said today.

Prudential, Britain's biggest insurer, said today it will pay $25 billion in cash and $10.5 billion in stock and other securities for AIA Group Ltd. The acquisition is Chief Executive Officer Tidjane Thiam's first since he took over five months ago, and is the biggest announced by any company worldwide this year, according to Bloomberg data.

"All of the banks will be falling over themselves to get a piece of this deal," said Peter Hahn, a professor who lectures on corporate finance at the Cass Business School in London. "This would be a windfall."

Prudential is being advised by teams led by Credit Suisse's Chris Williams and Lazard vice chairman Gary Parr. JPMorgan Cazenove and HSBC Holdings Plc are also working on financing the takeover. AIG was counseled by David Head, who runs a team at Citigroup that advises financial firms, Andrea Vittorelli, Andrew Chisholm and Chris Cole at Goldman Sachs, Blackstone's John Studzinski, and Deutsche Bank's Peter Babej and William Nichol.

Largest Insurance Takeover

The sale is the largest insurance takeover excluding the U.S. government's $182.3 billion bailout of AIG. It's also the biggest by a U.K. financial firm since Royal Bank of Scotland Plc bought National Westminster Bank for about $37.8 billion in 2000, Bloomberg data show.

In the NatWest takeover, "U.K. shareholders were paying for another European business whereas here, U.K. shareholders are ponying up for a business in Asia, which really shows how the world has moved on," Mark Bentley, a London-based senior adviser to SDC Group, a private investment group and family office. "We're seeing the dismantling of one global firm, AIG, and another seeking to get into high-growth markets."

Prudential plans to fund its purchase by raising $20 billion in a rights offering. That would be about equal to Lloyds Banking Group Plc's 13.5 billion-pound government-backed sale in December, still the biggest rights offering in the U.K. Prudential shares dropped 72.5 pence, or 12 percent, to 530 pence in London trading today.

Rights Offer

Credit Suisse, JPMorgan and HSBC Holdings Plc agreed to underwrite the $20 billion rights offer in full. Prudential said it will pay about $1 billion in banking and legal fees and other costs linked to the share sale. The banks are likely to line up Asian investors willing to buy stock Prudential shareholders don't purchase in the offering, according to Cass's Hahn.

"If Pru's existing shareholders don't pick this up, they can recycle those rights and sell to Asian investors," he said.

AIG said last May it would sell shares of AIA in an IPO after an auction of the division failed to turn up bids that matched what AIG executives thought the company was worth.

The decision to drop the IPO will deprive Deutsche Bank and Morgan Stanley of fees for overseeing the offering. The two might have made earned $158 million each from the IPO, assuming the IPO valued AIA at the same $35.5 billion that Prudential is paying and AIG sold 50 percent of its stake in the sale.

A typical IPO of that size in Hong Kong generates total fees of about 2.5 percent, according to documents released by the Federal Reserve last year. The joint global coordinators typically earn about 36 percent of the fee pool each, with the remainder going to the other underwriters, the document shows.

Morgan Stanley

Morgan Stanley may still earn about $52.5 million for advising the Federal Reserve Bank of New York on the AIA takeover, a schedule disclosed by the Fed last year shows. The New York Fed owns preferred interests in AIA and American International Life Insurance Co. following the bailout.

The team at Morgan Stanley advising the New York Fed included Eric Bischof, James Head, Peter Juhas and Jared Abbey.

MetLife Inc. has said it is in talks to buy Alico, which operates in more than 50 countries outside the U.S. A sale of Alico for about $15 billion would generate a $25.5 million fee for Morgan Stanley.

Founded in Shanghai in 1919, AIA will give Prudential a business with 20,000 employees and 250,000 agents in markets spanning China to Australia. AIA sells life, accident and health insurance policies, and private retirement planning and wealth management services, according to the company's Web site.

Prudential Plc Agrees to Buy AIA for $35.5 Billion

Bloomberg    March 01, 2010, 7:19 AM EST

By Kevin Crowley and Zachary R. Mider

March 1 (Bloomberg) -- Prudential Plc, Britain's biggest insurer, agreed to buy an Asian life insurance unit from American International Group Inc. for $35.5 billion in cash and stock to gain more than 20 million customers in the region.

Prudential will pay $25 billion in cash and $10.5 billion in stock and other securities for AIA Group Ltd., the London- based insurer said in a statement today. The insurer said it plans to raise $20 billion in a rights offering and sell about $5 billion of bonds to finance the cash part of its offer.

The purchase is Chief Executive Officer Tidjane Thiam's first since he took over five months ago, and is the biggest announced by any company worldwide this year, according to data compiled by Bloomberg. Prudential is trying to boost sales in Asia as growth in the U.K declines. By acquiring AIA, Thiam gets a business with more than 90 years in Asia and more than $60 billion of assets in 13 markets in the region. The price is about 50 percent greater than Prudential's market value.

"It shows the company is very bullish on the Asia market," said Luo Yi, a Shenzhen-based analyst at China Merchants Securities Co. "The Chinese market has vast potential."

Prudential shares fell 13 percent to 525.5 pence as of 12 p.m. in London trading. The stock has more than doubled in the past year, giving the insurer a market value of 15.3 billion pounds before the purchase was announced. AIG advanced 9 percent to $27 in early trading at 7:01 a.m. in New York.

Faster Than IPO

The sale would be AIG's largest since it received a U.S. government bailout in 2008. AIG had planned an initial public offering for the Hong Kong-based unit to help repay its $182.3 billion rescue. AIG will own about 11 percent of Prudential following the transaction, Thiam told reporters today.

"We decided that a sale to Prudential enables AIG to realize value on a faster track to repay U.S. taxpayer," AIG CEO Robert Benmosche said in a statement today.

The insurer is paying about 1.69 times the embedded value of AIA in 2009. Chinese insurers are trading for about 2.9 times embedded value, and Axa Asia Pacific Holdings trades at about 1.7 times, according to Thiam. Embedded value estimates a company's net worth excluding new business.

'The Right Move'

The acquisition of AIA, founded in Shanghai in 1919, gives Prudential a business with 20,000 employees and 250,000 agents in markets spanning China to Australia. AIA sells life, accident and health insurance policies, and private retirement planning and wealth management services, its Web site shows. McKinsey & Co. has estimated Asia will deliver around 40 percent of global life insurance premium growth over the next five years.

"Strategically it's probably the right move" for Prudential, said Justin Urquhart Stewart, who oversees about $3.3 billion at 7 Investment Management in London, including Prudential shares. "It puts them into a different league."

The insurer plans to list its shares on both the Hong Kong Stock Exchange and the London Stock Exchange following the transaction. It will keep its headquarters in London.

Thiam said in a Feb. 17 interview that he wants to raise the proportion of sales from Asia to 80 percent by 2015 from 50 percent now. Prudential and AIA combined would have had about 60 percent of new business profit from Asia in 2009, he said today.

'One-Off Opportunity'

"This transaction is hugely exciting and a one-off opportunity," Thiam said in a statement. "It puts us in a strong leadership position in all the critical growth markets in the region."

Credit Suisse Group AG, JPMorgan Cazenove and HSBC Holdings Plc agreed to underwrite the $20 billion rights offer in full. The shares are likely to be sold for 40 percent less than today's price, Thiam told reporters today. Prudential will pay about $1 billion in fees and other costs related to the offer.

The offering would be the biggest since Lloyds Banking Group Plc's 13.5 billion pounds ($20.4 billion) sale in December, still the U.K.'s largest.

"If you've got backing from a few banks and a few major shareholders, there will be a way to make this deal happen," said Marcus Barnard, a London-based analyst at Oriel Securities Ltd. with a "sell" rating on the stock. "The question is the cost and the risk involved." The insurer may be forced to sell assets in India and China to comply with local foreign-ownership regulations, he said.

India, China Talks

Thiam said Prudential is in talks with regulators in India and China. The insurer intends to keep its stake in a joint venture with China's Citic Group, he said. In India, where both Prudential and AIG have separate joint ventures, regulators have told the company it can't have two licenses, Thiam said.

AIG said last May that it would pursue an IPO of AIA after an auction of the business failed to turn up bids that matched what AIG executives thought the company was worth. That included a bid from Prudential that valued AIA at about $15 billion, one of the people said.

The sum raised in the sale would exceed the total of more than 20 other asset sales announced by AIG, which has struck deals to raise more than $12 billion by selling units, including a U.S. auto insurer and equipment guarantor.

AIG had a fourth-quarter net loss of $8.87 billion, narrower than the insurer's $61.7 billion loss the previous year, which was the biggest in U.S. corporate history.

Alico, AIA

AIG gave a $9 billion stake in American Life Insurance Co., known as Alico, and $16 billion in AIA, its biggest non-U.S. life insurance units, to the Fed in December. AIG will redeem the Fed's $16 billion interest in AIA with proceeds from the sale and repay about $9 billion more on the credit line, the insurer said today.

The $10.5 billion in securities obtained from Prudential will be sold "over time, subject to market conditions, following the lapse of agreed-upon minimum holding periods," AIG said in a statement. "All net cash proceeds from the monetization of these securities will be used to repay any outstanding debt" to the Federal Reserve Bank of New York.

AIG owed about $25 billion on the line as of last week. The insurer had drawn more than $40 billion before reducing the sum in December.

The Fed agreed last year, as part of AIG's fourth bailout, to allow the company to pay down its debt with an equity interest in the life units before completing a sale. The plan reduced pressure on AIG to sell in early 2009 when potential bidders were hobbled by losses and the inability to raise funds.

Fed Plan

AIG's bailout includes a $60 billion Fed credit line, an investment of as much as $69.8 billion from the Treasury Department and $52.5 billion to buy mortgage-linked assets owned or backed by the insurer.

MetLife Inc. has said it is in talks to buy Alico, which operates in more than 50 countries outside the U.S. The insurers are discussing a price of about $15 billion, according to people with knowledge of the matter.

Citigroup Inc. and Goldman Sachs Group Inc. advised AIG. Prudential Plc has no relation to Newark, New Jersey-based Prudential Financial Inc. and operates in the U.S. through its Jackson National Life Insurance Co. unit.

Takaful Ikhlas unfazed by competition

The Star Malaysia    Tuesday March 2, 2010        By EUGENE MAHALINGAM

KUALA LUMPUR: Takaful Ikhlas Sdn Bhd, the Islamic insurance arm of MNRB Holdings Bhd, is unfazed by new competition from potential takaful players that wish to enter the industry.

"For us, competition drives us or brings innovation," president and chief executive officer Syed Moheeb Syed Kamarulzaman said after the launch of its corporate head office in Bangsar South yesterday.

Syed Moheeb was speaking in response to the Government's financial sector liberalisation plan that was announced last year, which included the issuance of licences for seven banking and two takaful players from 2009 until 2011.

"We have always built our reputation and business based on quality service. That is one area that we think would be difficult for a new operator to come in and attain quickly. We're quite confident that we've built the infrastructure to ensure consistent high service level. The new players will push us and make us strive harder to introduce innovative products into the market," Syed Moheeb said.

Chairman Sharkawi Alis acknowledged in his speech that the Islamic insurance firm would have to brace for tougher competition with the introduction of more players.

"When we started in 2003, there were only four takaful operators in the country. Today, we have eight with two more players coming on stream soon. With more players, competition for market share will become stiffer."

He, however, said the takaful industry had good growth potential.

"On the plus side, the takaful industry is growing, not only in Malaysia but worldwide," Sharkawi said, adding that the global takaful industry was projected to reach US$7.7bil by end-2012.

According to Sharkawi, Malaysia – which is the world's second largest takaful market – recorded a gross contribution of RM3.5bil in 2009 and is expected to hit RM5.5bil by end-2013.

Takaful Ikhlas raked in RM580mil in gross contributions for its financial year ended March 31, 2009 (FY09). It is targeting to record RM625mil in contributions for FY10.

On its new head office, the company invested RM87mil in two tower blocks covering a total built-up area of 99,286 sq ft. A further RM10mil was spent on renovations. The launch was officiated by Deputy Finance Minister Datuk Dr Awang Adek Awang Hussin.

On a recent report that the Prime Minister was eyeing 5% to 6% gross domestic product (GDP) growth for 2010, Dr Awang Adek said: "It would be a fantastic number if we can get 6%.

"If you look at the current economic scenario, it looks like the world and the Malaysian economy is improving. Our fourth quarter (GDP) results also were better than expected."

The GDP expanded 4.5% in the fourth quarter after three consecutive quarters of contractions. For the full year, the Malaysian economy contracted by 1.7%.

Allianz continues to grow profitably

The Star Malaysia    Tuesday March 2, 2010

KUALA LUMPUR: Allianz Malaysia Bhd (AMB) group continued to grow profitably in its 2009 results, the company said in a statement yesterday.

The group clocked a gross written premium (GWP) of RM2.07bil in 2009 as compared with RM1.77bil in 2008, translating to a significant growth of 17%.

The general insurance business of AMB, Allianz General Insurance Co (Malaysia) Bhd, recorded RM1.2bil in GWP last year, a 12% growth from 2008. "The group also posted a commendable underwriting profit of RM102.4mil, a 29% jump from 2008, through its underwriting and strong risk management," the company stated.

Allianz General also secured 10.35% of market share as at Sept 30, 2009, making it the top general insurance provider in Malaysia. Other than the general insurance business, Allianz Life Insurance Malaysia Bhd also recorded profitable growth in 2009 with RM868.7mil generated in GWP, for a 26% increase over the RM692mil in the previous year.

"Moving forward, in 2010, we will continue to focus on profitable growth while further enhancing various productive distribution channels, especially our core agency force in the life insurance business," chief executive officer of Allianz Malaysia Bhd Alexander Ankel said. — Bernama