Insurance companies are to implement risk based capital framework starting from 1st Jan 2009, where Central Bank is imposing the supervisory CAR must be 130% or more otherwise company must raise more capital in order to continue doing business.
Implementation of RBC MAY spark:-
1. raise capital activities which could dilute earnings
2. Companies with high risk portfolio to diversify their portfolio and the fastest way is through M&A
3. Consolidation of the industry in the way of M&A activities
4. De-tariff: As capital is charged according to the underwriting risk, current tariff fixing would no longer economical sound.
Do you think any of these companies will give you 25% return every year ?
Kurnia
Takaful
MAA
Manulife
Allianz
LPI
Jerneh
MNRB
P&O
PACMAS
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Implementation of RBC MAY spark:-
1. raise capital activities which could dilute earnings
2. Companies with high risk portfolio to diversify their portfolio and the fastest way is through M&A
3. Consolidation of the industry in the way of M&A activities
4. De-tariff: As capital is charged according to the underwriting risk, current tariff fixing would no longer economical sound.
Do you think any of these companies will give you 25% return every year ?
Kurnia
Takaful
MAA
Manulife
Allianz
LPI
Jerneh
MNRB
P&O
PACMAS
