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