What this blog is about?

Purpose: This blog provides brief insurance news and digest for the busy executives. It is a handy archive covering major insurance news in Malaysia and nearby countries. 

Disclaimer: While all attempts are made to ensure the accuracy of the news herein, we are not liable for any loss arising from the use of any information contained in this blog.

Reproduction: You may reproduce materials published here provided that the source (actuaries.com.my/insurance-news) is properly acknowledged.

CIMB may pull out of CIMB Aviva 

Insurance News

17:22  -  Public
CIMB may sell its 51% stake in CIMB Aviva. The value of the entire CIMB Aviva's operations is estimated at US$1 bil. 3 companies (Prudential, Manulife and Sun Life) have made final offers to acquire CIMB Aviva.http://bit.ly/TAS1128b

KUALA LUMPUR: CIMB Group Holdings Bhd, Malaysia’s second-largest bank, is considering selling its 51 per cent stake in an insurance joint venture with Aviva Plc, said four people with knowledge of the matter.


Posted by Loo Hai Wednesday, November 28, 2012 5:25:00 PM Categories: Aviva CIMB Manulife Merger Prudential Sun Life
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AIA made 2 key appointments 

Insurance News

09:35  -  Public
And here's the news on AIA's new appointments, from the mainstream newspaper. Bill Lisle: new CEO. Khor Hock Seng: CEO of AIA Group Corporate Solutions based in Hong Kong.  Both effective 1 Dec 2012.http://bit.ly/TAS1128a
AIA announces two key appointments | theSundaily »
PETALING JAYA (Nov 27, 2012): AIA Group Ltd has appointed Bill Lisle to lead the integration of AIA and ING in Malaysia from Dec 1, reporting to the group's regional chief executive Ng Keng Hooi. Lisl...


Posted by Loo Hai Wednesday, November 28, 2012 9:42:00 AM Categories: AIA Executive Movement
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New CEO for AIA Malaysia 

Bill Lisle

It looks like AIA Malaysia has a new CEO.

Based on the sources from readers of Insurance News, Bill Lisle has taken over from Khor Hock Seng as the new CEO.

Bill Lisle became CEO of Prudential Malaysia (PAMB) in April 2008 after serving as its general manager of business distribution for 3 years. He left PAMB in February 2009 to join Aviva Asia as a regional director.  In September 2010, Bill joined AIA as its Group Chief Distribution Officer.

According to our reader, Khor Hock Seng will take on a regional role as CEO of regional group insurance.

Posted by Loo Hai Tuesday, November 27, 2012 9:34:00 PM Categories: AIA Executive Movement
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MoF Approves P&O's Divestment 

Insurance News

17:22  -  Public
MoF has granted its approval for the divestment of 49% of P&O to Sanlam.http://bit.ly/TAS1027a

KUALA LUMPUR: Pacific & Orient Bhd (POB) has yesterday received approval from the Minister of Finance via a letter from Bank Negara to dispose of its 49 per cent equity interest in Pacific & Orient Insurance Co Bhd to Sanlam Emerging Markets Proprietary Ltd.


Posted by Loo Hai Tuesday, November 27, 2012 5:31:00 PM Categories: Merger P&O
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Public Mutual Launches 6 PRS Funds and PRS Market Potential 

Insurance News

21:02  -  Public
PRS is expected to face a slow start with a potential market size of RM600 mil. Education and promotion are needed to boost the take-up rate. Meanwhile, Public Mutual today became the 4th fund manager to launch PRS with 6 funds.
http://bit.ly/TAS1126a http://bit.ly/TAS1126b
Slow start seen for private retirement funds »
PETALING JAYA: Despite competition heating up among private retirement funds, it is expected to take off at a slow pace as more education and promotion are needed to boost the take-up rate of these fu...


Posted by Loo Hai Monday, November 26, 2012 9:03:00 PM Categories: PRS Public Mutual
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CIMB-Principal signed up 8 partners 


CIMB-Principal has signed up 8 companies for its PRS Plus partner programme - a collaboration with employers to systematically introduce their employees to PRS. CIMB-Principal anticipates that it can hit a PRS fund size of RM2 bil in 5 years time. http://bit.ly/TAS1122a

CIMB-Principal Asset Management Bhd anticipates its newly launched Private Retirement Scheme to account for 20 per cent of its revenue in five years and with a fund size of RM2 billion.


Posted by Loo Hai Thursday, November 22, 2012 7:11:00 PM Categories: CIMB PRS
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How Attractive is the Great Retirement Plan Return? 

So how attractive is the investment return for a 35-year old policyholder who purchases Great Retirement Plan?

Based on the information provided in the newspaper article, we apply the following actuarial formula to work out the return to the policyholder:

By solving the above actuarial formula, we obtain an annual return of 3.56%.


As a comparison, EPF has a minimum guaranteed return of 2.5% and has declared between 4.25% to 6% in the past 10 years.

Maybank is currently offering 3.8% on fixed deposit of 60 months.

News Background

Great Eastern became the first life insurance company to roll out a deferred annuity product to take advantage of the RM3,000 tax relief, in response to the various Private Retirement Schemes (PRS) launched by unit trust companies.

The Great Retirement Plan provides guaranteed yearly income of 10 or 15 years from age 60 and 55 respectively. An example was given in the newspaper article for a policyholder aged 35:

Premiums paid: RM3,000 from age 35 for 10 years

Deferred annuity received: RM65,475 in 15 equal installments from age 55.

Posted by Loo Hai Thursday, November 22, 2012 2:01:00 PM Categories: Annuity Great Eastern PRS
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