Com­pany Cor­ner

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BUSI­NESS PART­NER­SHIP

Source: The Bor­neo Post, 20 De­cem­ber 2013 K&N Ke­nanga Hold­ings Bhd’s (Ke­nanga) Wealth Man­age­ment Depart­ment an­nounced that it has fi­nalised its part­ner­ship with Tokio Ma­rine Life In­sur­ance Malaysia Bhd (Tokio Ma­rine) to dis­trib­ute its life in­sur­ance prod­ucts. Ke­nanga Chair­man Tengku Dato Paduka Noor Zakiah Binti Tengku Ismail and Tokio Ma­rine Chair­man Tan Sri Dato Dr Yahya Bin Awang ex­changed documents dur­ing the sign­ing cer­e­mony. Also present are Tokio Ma­rine CEO Toi See Jong, Ke­nanga Group Man­ag­ing Di­rec­tor Chay Wai Leong, Tokio Ma­rine Deputy CEO Akira Yoshikawa and Ke­nanga Se­nior Ad­viser Bruce Kho.

METLIFE FORMS PART­NERS WITH MALAYSIA’S AMMB SET TO MAKE AC­QUI­SI­TIONS

Source: MetLife, Inc. Press Re­lease, 19 De­cem­ber 2013 MetLife Inc. has reached an agree­ment with Malaysia’s AMMB Hold­ings Bhd (AMMB) to seek reg­u­la­tory ap­proval of a pro­posed strate­gic part­ner­ship in­volv­ing AmLife In­sur­ance Ber­had (AmLife) and AmFam­ily Taka­ful Ber­had (AmTaka­ful). Upon re­ceipt of reg­u­la­tory ap­provals and sat­is­fac­tion of cer­tain other con­di­tions, the pro­posed trans­ac­tion will re­sult in MetLife own­ing a 50 per cent plus one share in AmLife, with the re­main­ing shares owned by AMMB, and AMMB own­ing a 50 per cent plus one share in AmTaka­ful, with the re­main­ing shares owned by MetLife. In ad­di­tion, the pro­posed trans­ac­tion will re­sult in AmLife and AmTaka­ful en­ter­ing into exclusive 20year banc as­sur­ance and banc Taka­ful agree­ments for the dis­tri­bu­tion of life in­sur­ance and fam­ily Taka­ful prod­ucts through the dis­tri­bu­tion net­work of AMMB’s bank­ing sub­sidiaries, AmBank (M) Ber­had and AmIs­lamic Bank Ber­had, in Malaysia. The to­tal con­sid­er­a­tion for the pro­posed trans­ac­tion payable by MetLife is RM 812 mil­lion (equiv­a­lent to U.S. $249 mil­lion) upon com­ple­tion, sub­ject to cus­tom­ary ad­just­ments. The pro­posed trans­ac­tion fol­lows re­cent an­nounce­ments from MetLife of the for­ma­tion of a joint ven­ture with Bank for In­vest­ment and De­vel­op­ment of Viet­nam and open­ing of a rep­re­sen­ta­tive of­fice in Myan­mar.

AIA TO SELL CIT­I­GROUP IN­SUR­ANCE IN ASIA-PA­CIFIC

Source: Bloomberg, 19 De­cem­ber 2013 Cit­i­group Inc. chose AIA Group Ltd. to sell life in­sur­ance through its branch net­work in 11 Asia Pa­cific coun­tries, as the U.S. bank slashes the num­ber of in­sur­ers it part­ners with in the re­gion. The exclusive 15-year agree­ment al­lows AIA, the Asia Pa­cific re­gion’s third-big­gest in­surer by mar­ket value, to sell prod­ucts to the U.S. bank’s cus­tomers in 11 coun­tries from China to Aus­tralia, ac­cord­ing to state­ments from Cit­i­group and AIA. The part­ner­ships will be set up in each ter­ri­tory in 2014. The deal gives AIA ac­cess to hold­ers of more than 34 mil­lion in­di­vid­ual ac­counts, as New York-based Cit­i­group re­places about 150 sep­a­rate agree­ments across the re­gion. While no fi­nan­cial de­tails were dis­closed, a per­son fa­mil­iar with the sale told Bloomberg last month that the agree­ment could gen­er­ate as much as U.S.$20 bil­lion (MYR 65.63 bil­lion) in rev­enue, in­clud­ing com­mis­sions and up­front fees. The ac­cord lets the com­pa­nies tap a re­gion that has a lower rate of in­sur­ance pen­e­tra­tion than oth­ers. Some 2.6 per cent of people in the Asia Pa­cific re­gion have life in­sur­ance, com­pared with 3.65 per cent in the U.S. and 8.44 per cent in the U.K., ac­cord­ing to Swiss Re AG re­search cited in the Cit­i­group state­ment.

U.S$1.00 = MYR3.28

NKSJ HOLD­INGS BROAD­ENS IN­TER­NA­TIONAL FOOT­PRINT WITH AC­QUI­SI­TION OF LLOYD’S IN­SURER, CANOPIUS GROUP

Source: Joint Press Re­lease by NKSJ Hold­ings and Canopius Group Limited, 18 De­cem­ber 2013 NKSJ Hold­ings (NKSJ), a top three Ja­panese in­surer, has signed an agree­ment, through its in­sur­ance sub­sidiary Sompo Ja­pan In­sur­ance Inc. (Sompo Ja­pan), to pur­chase 100 per cent of the shares of Canopius Group Limited (Canopius), a leading specialist (re) in­surer pre­dom­i­nantly op­er­at­ing in the Lloyd’s mar­ket. The agree­ment was signed with funds man­aged by pri­vate eq­uity firm Bre­gal Cap­i­tal LLC (Bre­gal), Canopius’s ma­jor­ity share­holder, and with mi­nor­ity share­hold­ers, com­pris­ing Canopius’s se­nior man­age­ment team. Sompo Ja­pan will pay £594m (ap­prox. MYR3.2 bil), which rep­re­sents a 1.5x mul­ti­ple based on Canopius’s unau­dited tan­gi­ble net as­set value (TNAV) at 30 June 2013. This price will be ad­justed to re­flect Canopius’s au­dited TNAV at 31 De­cem­ber 2013. The ac­qui­si­tion will be sourced from ex­ist­ing funds. Sub­ject to reg­u­la­tory ap­proval, the trans­ac­tion is ex­pected to close in the sec­ond quar­ter of 2014. Canopius will form the foun­da­tion of NKSJ Group’s spe­cialty in­sur­ance busi­ness and will in­crease the pro­file of NKSJ Group’s in­ter­na­tional busi­ness. On com­ple­tion, Canopius will be man­aged as a sep­a­rate spe­cialty in­surer as part of NKSJ’s core group in­surer, Sompo Ja­pan. Canopius will re­tain its es­tab­lished and glob­ally re­spected brand, and the in­cum­bent man­age­ment team will re­main in place.

£1.00 = MYR5.37

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