Whoever buy MNRB, hold on the share although RHB research said claim ratio is high. FYI, I just check through the www.malaysian-re.com.my, in fact, the largest claim in 2013 is over RM151 million at 27th June 2013 but do not forget, quarter 2 & quarter 3 still report positive result. Why like that? because this claim is part of the calculation in getting insurance business.
I do not know the motive behind RHB research as this research house keep on saying how bad it is this counter & only quote this counter with PE 6 times whereas other counters like Takaful can be easily 12 times or 20 times for Tuneins.
Worst still, counter like Takaful or Tuneins do not have good dividend yield. No matter what happens, I will hang on my share in MNRB & with better results in FY 2014, I strongly believe dividend can easily 40 cents & above...
In FY 2012, MNRB achieved 43.40 cents EPS. At that year, RM55 million is allocated for Thailand flood claim. If not, total EPS in FY 2012 is more than 65 cents. So, pertaining to the RHB research, I do not give any value on that. Claim is part & parcel of insurance business. Even catastrophic claim like Thailand flood claim in 2012, MNRB still managed to get 43.40 cents.
I will hold on my shares & wait for 40 cents dividend in FY 2014.
Then you dont understand the reinsurance business where the agreements can be very tricky and flawed without the proper actuarial evaluation. There is a reason why reinsurance players are trading at discount of book value to insurers in the region. The report mentioned that MNRB slipped way below RM3.00 back in FY12 when that happened, so the market understand how to evaluate the cat claims for a reason. And do you think the major shareholders pared down their stake (forgoing the fat dividends in FY13) for no reason ?
I like MNRB. MNRB was one of my best performing stocks for dividend yield. Warren Buffet likes to invest in Insurance Companies. There is little outlay for expenses since Insurance companies do not need to provide goods or services. It provides the assurance and protection against losses.
Insurance Companies will be a fantastic Class of Shares if not for so many untoward happenings on our Planet. The Book predicts in the Book of Revelation. Towards the end of times there will be a one ecological disaster on earth due to the profligacy and the abuse and misuse of earth's resources.
As such, Investing in Insurance Companies will require great fortitude in the face of further floods, cyclones , earthquakes and tsunami. Claims will always be there. Prediction of ever increasing earthquakes are clearly visible as the years progress. To counter losses Insurance Companies can raise premiums to cover increasing future claims. As such Insurance policy will get more and more expensive.
If you cannot stomach these uncertainties, I would invite you to consider 2 excellent counters for year 2014/2015 & beyond.
1) PM Corp - An Emerging Chocolate Manufacturing Concern. 2) MUI Berhad. Next Year Is VISIT MALAYSIA YEAR 2014 & YEAR OF FESTIVAL 2015. The Number Beneficiary of Tourist Arrivals To Malaysia Is MUI Berhad(3891).
MUI Berhad Has CORUS HOTELS FOR TOURISTS TO STAY IN. Travels & Tours Company To Bring Them Around Metrojaya, Reject Shop, Laura Ashley & East India to Shop till you drop! Quality Tudor Gold, Tango & Crispy Chocolates to buy and bring home.
just would like to check how much should be enter for MUI Bhd. instead of am unable to enter for BornoilWB(7036WB),pls adv price should be enter for 7036WB. Anyway I will still hold for MNRB till next year,,,
MNRB is the only licensed life reinsurer in Malaysia by BNM. I am not very familiar with the reinsurance business, can anyone from the insurance industry enlighten me? Does this mean that MNRB has a "monopoly" business?
AIG is eying the takaful market and re-insurance business in Malaysia...
American International Group Inc (AIG) is plotting its entry into Malaysia's takaful market, lured by the country's economic expansion and an industry that has grown more than fivefold in less than a decade. The insurer, the world's largest before being bailed out by the United States government in 2008, will start a syariah compliant reinsurance business by June and may eventua lly offer a fuller range of services, Antony Lee, chief executive officer at AIG's Malaysian unit, said in a February 11 interview, here. Rising affluence in Malaysia will spur increased demand, he said. Malaysia accounted for 11% of the US$20bn (RM66bn) takaful or Islamic insurance contributions in 2013, a February 13 report from the Malaysia International Islamic Financial Centre showed. (BT)
Gark, are you implying that AIG is interested in MNRB? I am not sure if BNM / MOF is keen on that. Remember our "Malaysian" pride factor? Btw, I am glad that this counter is inching up.
Yeah, understand that PNB has always wanted to get out (didn't know about the Allianz deal though, thanks for the info). Since MetLife is buying AmLife, maybe AIG can also buy some of MNRB, foreign partners may improve their competitiveness.
well hopefully something good will come through... since AIG is interested in re-insurance company but there is only 1 license holder. Unless government issue another license then jialat...
Hai Yan hit Phillipines badly, but were the people there took up insurances? I doubt so bcos they must take up the special natural disaster insurance to get covered. Those poor Filipinos who were hit badly got no money to take cover (sorry Filipinos no heart feeling,I am guessing only) Moreover how much % did MNRB involved ?
this qtr i dont think got div cos usually will give on final qtr so i will prefer monitor another 3 mnths instead perhaps price adjustment ard 3.5 back?
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
wajatimur_28
671 posts
Posted by wajatimur_28 > 2013-09-26 03:55 | Report Abuse
What is DY?please...