Posted by observatory > 2024-07-17 20:35 | Report Abuse

The business could be supported by the newly set up shared IT services in Malaysia. But any possible synergy with Allianz Malaysia?

Posted by wsb_investor > 2024-07-18 08:23 | Report Abuse

Allianz already has some existing shared service in Malaysia, but in a very weird arrangement.

Posted by observatory > 2024-07-18 11:32 | Report Abuse

What do you mean?

Posted by wsb_investor > 2024-07-18 12:38 | Report Abuse

If my understanding is correct, Allianz will loan out its internal staff (under a single entity), as shared service to other BUs, and get to profit from it. A more common way is, shared service will operate as a separated entity (might or might not under local BU, typically not under local BU, but directly under Group).

Posted by observatory > 2024-07-18 14:44 | Report Abuse

I see. Maybe for non-IT staffs. For IT they transferred the majority of Malaysian staffs to the new regional delivery center Allianz Technology Sdn Bhd

Posted by mesoan > 2024-07-21 19:12 | Report Abuse

but shared service is very small business, unlikely to improve Allianz mas earning

Posted by observatory > 2024-07-31 16:16 | Report Abuse

Only after reading yesterday news that I realize Prudential parent company owns just 51% * 50.99% = 26% of Prudential Assurance Malaysia Bhd.
If Prudential can’t obtain greater control as per Federal Court’s decision, wouldn’t it discourage Prudential from growing its Malaysian market?
How would Prudential agents react?

Posted by wsb_investor > 2024-07-31 17:11 | Report Abuse

No，Pru plc owns 51% of PAMB. If bumi proxy can just anyhow songlap foreigner share, I think discourage Prudential from growing MY market is the least concern.

Before 1998, Pru plc owned 30% of PAMB, Berjaya owned ~69%. In 1998, Berjaya divested in PAMB, and supposedly sold all ownership back to Pru plc. However due to insurance act 1996, Pru plc cannot, on paper, own 100%, hence the Detik Ria (30% @ 1998) as bumi proxy. Vincent Tan personally also hold 19% of PAMB share at this point, only later (unknown when), sold the 19% to Detik Ria. Pru plc has signed some put and call options on the ownership of Detik Ria (i.e. fixed price) that it will repurchase back the ownership at later time.

Later in ~2017, BNM (or government) started to want to enforce the foreign ownership (now 70%), Pru plc then planned to get back the 49% and then disinvest accordingly. This Tommy, used the excuse that not getting MoF approval, but ignoring that BNM has given the approval. Next time how? listen to who? MoF or BNM?

Who is enforcing the 70%? BNM. From the article, BNM also ok with Pru plc approach, to get back 100% of share, and proceed with disinvestment accordingly. Then suddenly, VT and Tommy, come out with this idea, to songlap Pru plc ownership.

Posted by wsb_investor > 2024-07-31 17:21 | Report Abuse

Prudential is not the only company that foreign owns 100% via bumi proxy. GE has gotten exemption. AIA has approval from white house, probably no one dare to touch. HLA and Etiqa are local. Allianz/Manulife are listed. Sunlife/MCIS/Generali/FWD/AmMetlife all have local partner. Zurich and Tokio Marine probably still 100% foreigner own, with proxy.

Posted by observatory > 2024-07-31 18:18 | Report Abuse

The Federal Court ruling cannot be further appealed. Wonder what can Prudential do. Negotiate and pay?

Posted by wsb_investor > 1 month ago | Report Abuse

Comments on AMIB report:
i. mandatory coinsurance, on long term, is good for everyone (except private hospitals)
ii. market risk charge under RBC2 will be higher, yes, but overall risk charges might not be higher. Also, comparing CAR change from RBC to RBC2 is completely meaningless. There are new risk charges (or new components), but there are also diversification.

Posted by wsb_investor > 1 month ago | Report Abuse

Allianz's proposed acquisition of a 51% stake in Singapore's Income Insurance for US$1.6bn has been called off after the Singapore government intervened, stating the merger "would not be in the public interest."

Posted by wsb_investor > 1 month ago | Report Abuse

Expert Foresees ‘Full Privatisation’ Of MOH’s FPP Service

Posted by wsb_investor > 3 weeks ago | Report Abuse

Allianz is currently priced at around 1x BV for GI, and 1x CSM + NAV for Life.
PBB is offering to takeover LPI @ ~1.74x BV.
In Singapore, Allianz offers to takeover NTUC @ 100% EV (failed), GE offers to privatise @ ~70% EV (not going well).
Regionally, Prudential and AIA are still trading at near record low, and FWD IPO still keep delaying due to weak market sentiment.
If GI is fully priced (based on Lonpac 1.74x), share price should be ~28.
If both Life and GI is fully priced (based on pre-covid era, life insurance valuation), share price should be ~40.

Allianz FY2023 total expense is ~650mil, while PBT is 957mil. I understand that Allianz is currently undergoing some cost saving measure, say if materialise, a 10% cut in expense, can increase PBT by 6.8%.

Immediate catalyst will depend on Anwar's healthcare reform.
Currently, Malaysia healthcare expenditure is ~50bil, of which 17% by private insurance (~8.5bil).
Allianz has ~1.5-2bil/yearly (and rising, with loss ratio ~80-90%) in medical premium/COI alone (>17% market share).
Anwar is pushing for rakan-KKM/FPP in government hospital, and supposedly in his ideal world, only B40 can enjoy RM1 healthcare, in the crowded government hospital. M40 can go for full pay gov hospital, and T20 can go private hospital. A lot room for medical insurance, if Anwar's plan success, of course, at the expenses of rakyat, and make greedy private investors richer.

Posted by observatory > 3 weeks ago | Report Abuse

GI last 12-month ROE was about 16%. If sustainable, a 1.7x P/B multiple similar to LPI is fair. The GI valuation will be RM2,611m * 1.7 = RM4,439m

I’m not sure about the fair multiple for life business.
Net CSM + tangible shareholder equity = RM4,497m.
Market leader AIA which has high growth rate in new business value, is currently traded at 1.3X EV (~62/48).
Shouldn't Allianz Life be valued at a discount to AIA?

Posted by winston1 > 3 weeks ago | Report Abuse

Come January, can expect good dividend announcement

Posted by wsb_investor > 3 weeks ago | Report Abuse

I compared AIA MY and Allianz MY NB growth, Allianz is marginally higher than AIA for 2023 vs 2022, and 2023 vs 2019. Anyways AIA HK covers too many markets, and hard to put value on them, vs Allianz MY is a lot more simple.

Posted by wsb_investor > 4 days ago | Report Abuse

Maybank is said to weigh options for insurer Etiqa, value @ around $4billion, ~RM 17.6bil, more than double of Allianz current market cap.