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Why you should not buy IPOs As Sheng Siong is launching its IPO next month, I expected a few calls as whenever an IPO is launching. And if you are my client, you know my answer. I decide to write this article so everybody can benefit...

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Questions to ask your Financial Adviser Every Sunday morning when I read the newspapers, I always see articles or advertisements regarding "Financial Advisers". Nowadays, just like the once prestigious word "Banker", which is misused in the...

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Revision to Nomination of Insurance Nominees Regulation With the onset of the Mental Capacity Act ("MCA") coming into effect on 1st March 2010, the Insurance (Nomination of Beneficiaries) Regulations 2009 ("the Regulations") will be amended to effect 2 changes: The...

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The ABCs of the Financial Advisers Act The title, Financial Adviser, is always mis-used in the industry and misunderstood by the consumers. On 10 October 2002, the Financial Advisers Act came into effect and all financial institutions are...

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Moratorium Underwriting by Aviva It is a common that insurance companies do not cover pre-existing condition. Typically, pre-existing conditions will be excluded with little or no chance of them being covered, even after a number of treatment-free...

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HSBC to sell general insurance business to AXA and QBE

Category : Insurer News

HSBC Holdings PLC said Wednesday that it has agreed to sell its general-insurance businesses in Hong Kong, Singapore, Argentina and Mexico to AXA Group and Australia’s QBE Insurance Group Ltd. in separate deals valued at about $914 million in cash.

The move is part of HSBC’s efforts to diversify away from noncore businesses, while focusing on its core banking operations.

Following the completion of the deals, AXA and QBE will become the exclusive providers of general-insurance products distributed by HSBC and its Hang Seng Bank unit to retail and commercial banking customers in Hong Kong, China, Singapore, India, Indonesia, Mexico and Argentina under 10-year bancassurance agreements.

Chartis tops as general insurance business in Singapore

Category : Insurer News

Chartis Singapore REIGNED as the market leader in general insurance business in Singapore, in 2010.

This was reported in a Business Times article, dated the 10th of August 2011, where it was indicated that the Monetary Authority of Singapore’s (MAS) statistics showed that among the direct insurers in Singapore, Chartis Singapore had earned a total of $449.5 million in gross written premiums in 2010.  This translates to about 14.7 per cent of the $3.059.2 million in premiums earned by all the members of the General Insurance Association of Singapore (GIA).

AIA to Transfer Insurance Business

Category : Insurer News

American International Assurance Company, Limited (AIA) announced today plans to transfer its Singapore life and general insurance business, which has to-date been owned and operated by its Singapore branch to AIA Singapore Private Limited (AIA Singapore), a wholly-owned, Singapore-incorporated subsidiary of AIA Group.

AIA has lodged the formal Scheme of Transfer with the Monetary Authority of Singapore (MAS). The Scheme of Transfer is also subject to confirmation by the High Court of Singapore and is expected to take effect on 1 January 2012 or such later date as the High Court may approve. AIA Singapore will replace AIA as the insurer for the insurance policies once the transfer is effective.

“With the transfer of the life and general insurance business to AIA Singapore, our policyholders will enjoy the same terms and conditions of their insurance policies. Any policy benefits due will continue to be honoured by AIA Singapore Private Limited, and the transfer will be a seamless process,” said Mr Tan Hak Leh, Senior Vice President and Chief Executive Officer of AIA (Singapore branch).

AIA will be sending notifications to all policyholders on details of the transfer from next month.

AXA extends to cover pre-existing medical condition for Hypertension and High Cholesterol

Category : Financial Product Update, Insurer News, Medical Insurance

Hypertension and Hyperlipidaemia (High Cholesterol) are becoming common ailments in Singapore. Many people with such pre-existing medical conditions are struggling to find medical coverage for themselves. They are either declined or excluded for such conditions.

Although they can choose Moratorium Underwriting offered by Aviva to obtain hospitalization coverage, these pre-existing conditions are still excluded.

Fortunately, AXA has taken the step to extend their health insurance plan coverage on these said medical conditions. People with pre-existing condition can complete a questionnaire and submit to AXA for review. Once accepted, there will be a loading to the premium and customers can get their hypertension and hyperlipidaemia covered.

In addition, AXA is offering Individual Take-Over. You can now switch your Individual Hospital & Surgical policies over to AXA from another insurance company. You will enjoy the same underwriting terms as their current policies, including coverage of any pre-existing conditions already covered by your existing insurer.

Besides AXA, Global Health Policy offered by Bupa International has similar benefits.

S&P Raised AIA Group Rating TO AA-

Category : Insurer News, Stocks

HONG KONG, 23 NOVEMBER 2010 – AIA Group Limited, (“AIA”; stock code: 1299), the largest independent listed pan-Asian life insurance group in the world, is pleased to confirm that Standard & Poor’s Rating Services (“S&P”) has raised its ratings on two of AIA operating entities — American International Assurance Company, Limited (“AIA Ltd”) and its wholly owned subsidiary American International Assurance Company (Bermuda) Limited (“AIAB”) — to ‘AA-’ from ‘A+’, outlook stable.

AIA IPO will start trading in Hong Kong today

Category : Insurer News, Stocks

AIA Group Ltd. will debut on the Hong Kong stock exchange today after climbing in unofficial over-the-counter trading following the biggest initial public offering in the city’s history.

Shares of Hong Kong-based AIA, the insurer sold by American International Group Inc. in a $17.8 billion IPO, last traded at HK$21.50 each yesterday in gray market transactions brokered by BTIG LLC, said Christian Kielland, a managing director at the firm’s Hong Kong office. That’s 9.2 percent higher than the IPO price of HK$19.68 each.

Read the full story at Bloomberg

Prudential Listing in Hong Kong Exchange and SGX on May 11

Category : Insurer News, Stocks

British insurer Prudential Plc
said it plans to list in Hong Kong on May 11, and also announced a secondary listing in Singapore as it prepares to fund its US$35.5 billion ($48.7 million) takeover of Asian rival AIA.

The move to list in Asia is expected to draw local investors to a US$21 billion rights issue, launched to fund its acquisition of AIA, American International Group’s (AIG) Asian life insurance unit.

In a statement on Friday, Prudential said the Hong Kong Stock Exchange (HSE) had reviewed its application on April 21 and that trading in its shares was expected to begin on May 11.

It also confirmed plans for a secondary listing in Singapore on the SGX-ST, with trading also expected to begin on May 11.

Prudential said it would publish documents for each of the listings on or around May 5.

Source: TheEdge

Tenet Insurance: Sold to Sompo Japan

Category : Insurer News

On March 8th 2010, Hwa Hong  and its wholly-owned subsidiary, Hwa Hong Capital (Pte) Limited entered into a conditional sale and purchase agreement (the SPA) with Sompo Japan Insurance Inc (Sompo Japan) pursuant to which Hwa Hong has agreed to sell the entire issued share capital of Tenet to Sompo Japan. Completion of the sale is expected to take place by mid 2010 subject to the fulfillment of certain conditions precedent.

It is business as usual at Tenet Insurance and the management of Tenet Insurance remains committed to growing and developing our business.

For further information on the SPA, kindly refer to the announcement by Hwa Hong dated 8th March 2010 at www.sgx.com and Sompo Japan’s announcement at www.sompo-japan.co.jp/english/index.html.

AIG agreed to sell Asian Life Unit to Prudential Plc for $35.5 Billion

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Category : Insurer News

It has been more than 2 years and finally, Prudential finally got their hands on AIA, an arm of AIG, who was bailed out by US Government bails with $85 billion loan in 2008

March 1 (Bloomberg) — American International Group Inc. agreed to sell an Asian life insurance unit with 20 million customers to Prudential Plc for $35.5 billion in the company’s biggest divestiture since it was bailed out by the U.S.

Prudential, Britain’s biggest insurer, will pay $25 billion in cash and $10.5 billion in stock and other securities for AIA Group Ltd., the London-based insurer said in a statement today. The insurer said it plans to raise $20 billion in a rights offering and sell about $5 billion of bonds to finance the cash part of its offer.

The sum raised in the sale would exceed the total of more than 20 other deals announced by AIG since its 2008 rescue. The firm had planned an initial public offering for the unit after an auction of the business previously failed to turn up bids that matched what AIG executives thought the company was worth. That included a bid from Prudential that valued AIA at about $15 billion, according to a person with knowledge of the matter.

Read the full story at Bloomberg.

How about AIA Policy holders? I think there is no need to panic and all the policies should be in tact. This is just like the many reshuffles in business world we have seen after financial crisis but in a larger scale.

The action also shows Prudential’s determination to be rooted in Asia, follows her recent buying over of UOB life.

However, people might want to be more careful now as I personally feel Prudential is very aggressive in taking over the management.This can be seen that within one month of acquiring, they have changed the name of UOB Life to Pru Life Assurance Ltd. They may or may not want to keep the AIA brand name even though AIA, the name, has 90 years remarkable goodwill here.

So, policyholders might be affected by the way the how business is run, how the claims are handled, etc.

As for American Home Assurance Company, now re-branded as Chartis, this buy over probably has no impact to the them as the deal is only for Life Insurance Unit.

It is really a pity that all the efforts AIA staff have put in to re-brand the company. After all, it is just business. Now, let’s see what is going to happen, stay tuned….

AIG rebranded as Chartis

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Category : Insurer News

American Home Assurance Company (AHA), Commonly known as AIG, has been re-branded as Chartis insurance. The change will be take effect from 18 Jan, 2010

aig_logochartis_logo

 

 

AIG policy holders will receive the letter as below:

we are pleased to announce that American Home Assurance Company, Singapore Branch (AHA), will be rebranded to Chartis on 18 january 2010. this reflects the company’s brand alignment with the worldwide operations of chartis, inc.

the launch of Chartis in singapore is held in conjunction with our office relocation to the Chartis building at 78 shenton way. the timing of the rebranding and the move to our new location are viewed as auspicious because shenton way is where we opened one of our first offices in singapore. aig’s presence in singapore dates back to 1927 with AHA serving the singapore community since 1953.

the only immediate change you will see is in the new brand name and address. our insurance policy commitment to you remains unchanged. as we rebrand ourselves, we will continue our focus on service excellence; all our payment and claims processes standards remain as high as they are now.

the launch of Chartis in singapore represents an exciting and significant milestone on our path towards operating independence and the unification of our market leading international and U.S. general insurance business under one brand.

the name Chartis is derived from the greek word for map. it was chosen because it signifies the company’s ability to help clients and customers chart a course through today’s complex business environment.

although the Chartis brand is new, we are already one of the largest and most financially secure insurance organizations in the world. we employ 34,000 people worldwide and serve more than 40 million individual and business customers in more than 160 countries and jurisdictions.

today, we are the largest general insurance company in singapore with more than $740 million* in assets as at 30 september 2009. our ability to pay claims has not changed; we handled more than 121,000 new claims cases with more than $240M* claims paid in 2009.

our success would not be possible without customers such as you; we will continue to strive to earn your trust in all that we do by continuously searching for ways to enhance the services and products we provide.

if you have any questions or if you would like to have additional information about our company or products, pleases do not hesitate to contact us.

most sincerely,

kevin goulding
president
american home assurance company, singapore branch