Beginners Guide to TikTok for Search - Rachel Pearson - We are Tilt __ Bright...
Aia well placed for prs launch
1. Sunday December 9 2012 10:27:08 pm
login FREE Registration
Username •••••••• type and press enter Search
HOME CONTACT US JOIN US THE EDGE PROPERTY THE EDGE SINGAPORE
Newsflash
Categories AIA well-placed for PRS launch
First Read Business & Markets 2012
Written by Cindy Yeap of theedgemalaysia.com
Political News
Friday, 12 October 2012 08:49
Business News
0 17
Commentary
A + / A - / Reset
Features
Personal Finance KUALA LUMPUR: Malaysia’s new No 1 life insurer American
International Assurance Bhd (AIA Malaysia) will benefit from ING
Property
Malaysia’s agent force and over 50% market share in the company
Lifestyle insurance business as it prepares for the launch of private retirement
Deco & Garden scheme (PRS) products by year-end, its top executive said.
Technology “We are preparing for the [PRS] launch by year-end. Yes, there will
Media & Advertising definitely be benefits with ING being so big in the employee benefit
[company insurance] business,” AIA Malaysia CEO Khor Hock Seng
Management
told The Edge Financial Daily. He was speaking on sidelines of a briefing
Sports on AIA Group Ltd’s US$1.73 billion (RM5.31 billion) acquisition of ING
Insider Asia Groep NV’s Malaysia insurance business.
In today's The Edge
Financial executives have said that pending greater public awareness,
Financial Daily
the take-up of PRS products in Malaysia is likely to be led by buy-in
RSS from the corporate sector, which has tax benefits for PRS contributions
1001 Special that can be used as an employee retention tool.
commemorative feature
“[The ING acquisition] more than doubles our agent strength to create
The Edge Billion Ringgit
Club the largest agency in Malaysia,” AIA Group’s regional CEO Ng Keng
Hooi said, describing the ING acquisition as a “rare opportunity” for the
group to expand its agency’s scale and reach here. The price reflects2.4
times ING Malaysia’s 2011 book value and 1.8 times its US$952 million
embedded value, a measure of future profit in an insurer’s books.
With ING Malaysia’s 9,200 agents, AIA’s insurance agent force will be
enlarged to 16,600 — all of whom can potentially double as PRS product
sellers.
AIA’s acquisition of ING also propels AIA — previously Malaysia’s fourth largest insurer — ahead of Great Eastern Life
Assurance (M) Bhd and Prudential Assurance Malaysia Bhd to Malaysia’s biggest life insurer with a 24.8% market share and
US$2.05 billion in combined life insurance premium based on 2011 numbers, Ng said. Combined, AIA and ING made US$235
million profit in 2011 here.
According to Khor, there will be 15 life insurers in Malaysia after its merger with ING, which was Malaysia’s third largest
insurer. AIA’s closest peer is Great Eastern with 22.9% market share, followed by Prudential with 16.3% share.
Etiqa Insurance Bhd is estimated to have 7.6% market share, Zurich Insurance Malaysia Bhd has 5.6%, Hong Leong
Assurance Bhd has 5.2%, Allianz Life Insurance Malaysia Bhd has 4.5% while Tokio Marine Life Insurance Malaysia Bhd has
3.1%, AIA’s presentation slides showed.
The deal, which reportedly boosts Malaysia’s contribution to the Hong Kong-listed AIA group profit to 13% from 8%, also
makes Malaysia its fourth largest market in the region after Hong Kong, Thailand and Singapore, Ng said.
With ING’s numbers, contributions from bancassurance as a percentage of new business volume grow to 14% from 1% for AIA
and make the combined group No 2 in Malaysia’s bancassurance business.
AIA’s key executives say there are also potential synergies to be tapped from ING’s exclusive relationship with PUBLIC BANK
BHD [] in the bancassurance business that has been going on for five years and has 10 more years to run.
“Public Bank is a strong partner with over five million retail customers,” Ng said.