Personal data of 5,400 AXA Singapore customers exposed in cyberattack
07 Sep 2017 07:54PM (Updated: 07 Sep 2017 09:36PM)
SINGAPORE: The personal data of 5,400 AXA Insurance customers in Singapore was compromised in a cyberattack, according to an email the firm sent to affected customers.
In the email shared with Channel NewsAsia on Thursday (Sep 7), AXA data protection officer Eric Lelyon wrote that the stolen data included the email addresses, mobile numbers, insurance policy numbers and dates of birth of both past and present customers from its Our Health Portal.
No other personal data - such as the name, NRIC number, address, credit card, bank details, health status, claims history or marital status of customers - was stolen, he added.
Mr Lelyon wrote that "no further action" was required from affected customers as the information that was compromised was "not likely to, on its own, expose you to identity theft".
He warned customers, however, to be vigilant against phishing attempts for other personal details that could be linked to the cyber attack.
"In the unlikely event you feel that you may have inadvertently disclosed personal data as a result of a phishing attempt in the last few months, it is possible that this could be connected to this hacking incident, and if so, we urge you to file a police report. We also request that you reach out to us to let us know the details," Mr Lelyon wrote.
The French insurance company is taking the incident "very seriously" and has "taken all remedial actions to secure our Health Portal and to prevent a recurrence", he stated.
The firm has also filed a police report and is working closely with authorities, he added.
"We apologise to all our customers impacted by this incident. We wish to assure our customers that our Health Portal is now secure," said CEO of AXA Singapore, Jean Drouffe in a statement. "A thorough review of our IT systems is underway."
He added that most of the affected customers have been notified and that all remaining affected customers will be informed by Friday.
In response to Channel NewsAsia's queries, a spokesperson from the Monetary Authority of Singapore (MAS) said the authority has asked AXA to "initiate a thorough review of its IT security and to remediate control gaps".
"We understand that AXA has taken steps to address the vulnerability in its Health Portal. MAS takes a serious view of this incident and is investigating the matter," the spokesperson added.
Last year, the personal data of 7,794 Aviva policyholders and their dependents was also breached when a printing firm hired by the insurance company sent out erroneous annual premium statements. The firm, Toh-Shi Printing Singapore, was fined S$25,000 by the Personal Data Protection Commission Singapore.
Source: CNA/mz
Read more at http://www.channelnewsasia.com/news/singapore/personal-data-of-5-400-axa-singapore-customers-exposed-in-9194674
- wong chee tat :)
Showing posts with label insurance. Show all posts
Showing posts with label insurance. Show all posts
Thursday, September 7, 2017
Tuesday, December 20, 2016
Fairfax Financial to Acquire Allied World for $4.9 Billion in Cash and Stock
Fairfax Financial to Acquire Allied World for $4.9 Billion in Cash and Stock
12/18/2016
Download this Press Release (PDF 214 KB)
TORONTO, ONTARIO and ZUG, SWITZERLAND -- (Marketwired) -- 12/18/16 --
(Unless otherwise provided herein, all dollar amounts in this announcement are expressed in U.S. dollars)
Highlights:
Cash and share offer with dividend for total value of $54.00 per Allied World share - $10.00 in cash and $44.00 in Fairfax Shares
18% premium to the last close per Allied World share
Fairfax has the option to increase the total cash payable to Allied World shareholders by up to $30.00 per Allied World share, for a total of $40.00 cash per Allied World share
Offer unanimously supported by the Allied World board
Combination of Allied World and Fairfax creates a world leader in property and casualty insurance, reinsurance and investments (more details in investor presentation at http://www.fairfax.ca/Investors/Allied_World/default.aspx)
Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) and Allied World Assurance Company Holdings, AG ("Allied World") (NYSE:AWH) are pleased to announce that they have entered into a merger agreement (the "Agreement"), pursuant to which Fairfax will acquire all of the outstanding registered ordinary shares of Allied World (the "Allied World Shares"). Under the terms of the Agreement, based on Friday's closing stock price on the TSX for Fairfax of C$614.45 ($460.65), Allied World shareholders would receive a combination of Fairfax subordinate voting shares (the "Fairfax Shares") and cash equal to $54.00 per Allied World Share, for a total equity value of approximately $4.9 billion. The $54.00 per share offer price represents a premium of 18% to the closing price of $45.77 per Allied World Share on December 16, 2016, being the last business day prior to this announcement. The transaction has been unanimously approved by the boards of directors of both companies.
Allied World's position as a market-leading global property, casualty and specialty insurer and reinsurer, its major worldwide presence and its disciplined approach to underwriting make it a natural candidate to join Fairfax's expanding worldwide operations. Allied World's growing international reach is highly complementary to Fairfax's existing worldwide operations and the acquisition further diversifies Fairfax's group risk portfolio. In addition, Allied World will be able to leverage Fairfax's expertise in Canada, the United States and international insurance and reinsurance markets, thus enhancing Allied World's global product offering and providing it with expanded underwriting opportunities and support.
"We are excited to have Allied World join the Fairfax group," said Prem Watsa, Chairman and CEO of Fairfax. "Allied World is a high-quality company with an excellent long-term track record and an outstanding management team led by Scott Carmilani. Allied World will operate within the Fairfax group on a decentralized basis after closing, and we are looking forward to supporting Scott and the entire team at Allied World in growing their business over the long-term."
"This is a tremendous opportunity for Allied World," said Scott Carmilani, President, CEO and Chairman of Allied World. "Our shareholders are being rewarded for the strong performance of Allied World over the last 10 years since going public. We are strategically aligning ourselves with Fairfax, one of the premier companies in the insurance industry which has a great track record of supporting their operating companies and creating value for shareholders. We are excited to be joining the Fairfax organization - we share their passion for underwriting excellence and their entrepreneurial approach to growing the business with a long-term orientation. Our shareholders will benefit from Fairfax's tremendous investment capabilities as demonstrated by its superior long-term investment track record. The success of Fairfax's decentralized approach in empowering their management teams to drive profitable underwriting and combining Fairfax's investment philosophy will position us to create long-term value for shareholders. Fairfax provides a great home for Allied World to continue to build a strong business for our customers, business partners and employees."
Transaction Summary
Under the terms of the Agreement, Allied World shareholders will receive cash consideration of $10.00 for each Allied World Share, $5.00 of which will be paid in the form of a pre-closing cash dividend by Allied World. A portion of the stock consideration, having a value of $14.00 based on the closing price of Fairfax Shares as of December 16, 2016 (the "Fairfax Closing Price"), is payable at a fixed exchange ratio of 0.030392. The remaining portion of the stock consideration to Allied World will be a number of Fairfax Shares with a value equal to $30.00, with such number of Fairfax Shares determined based on the volume weighted average closing price of Fairfax Shares for the 20 trading days ending on the day prior to closing (provided that this volume weighted average price is no less than $435.65 and no greater than $485.65 per share, $25.00 below and above the Fairfax Closing Price, respectively). If the volume weighted average price of Fairfax Shares during this period is above $485.65, the stock portion of the consideration will be fixed at 0.061772 Fairfax Shares for each share of Allied World, and if it is below $435.65 per share, the stock portion of the consideration will be fixed at 0.068862 Fairfax Shares for each share of Allied World. Additionally, on or before 75 days after the date of the Agreement, Fairfax has the option to replace on a dollar-for-dollar basis this portion of the stock consideration with cash in an amount up to $30.00 per Allied World Share, together with the dividend, for up to a total cash consideration of $40.00 per Allied World Share. Fairfax may elect to fund the $30.00 in cash by an equity or debt issuance or by bringing in third party partners.
It is intended that the transaction will be effected by way of an exchange offer (the "Offer"), followed by a squeeze-out merger (the "Merger"), both in accordance with the applicable laws.
The transaction is subject to a sufficient number of the outstanding Allied World Shares having been tendered in the Offer, approval by Allied World shareholders and, to the extent required by applicable regulations, Fairfax shareholders, approvals from applicable regulators and satisfaction of other customary closing conditions. Closing of the transaction is currently expected to occur in the second quarter of 2017.
In accordance with section 611(c) of the Toronto Stock Exchange ("TSX") Company Manual, the transaction will require the approval of Fairfax shareholders by a majority vote since the Fairfax Shares issued in the transaction will exceed 25% of the total number of outstanding Fairfax Shares (assuming Fairfax does not exercise its option to replace part of the share consideration with cash). Prem Watsa, Fairfax's Chairman and CEO, and The Sixty Two Investment Company Limited ("Sixty Two"), a company controlled by Prem Watsa, who collectively hold an aggregate voting interest in Fairfax of approximately 43%, have signed a voting support agreement in favour of the Fairfax share issuance necessary in connection with the transaction. Fairfax intends to seek written consents from other shareholders of Fairfax that, together with the votes represented by the shares held by Prem Watsa and Sixty Two, represent more than 50% of the votes attached to all multiple and subordinate voting shares of Fairfax and will request that the TSX accept these written consents to support the transaction as evidence of shareholder approval and not require Fairfax to hold a shareholders' meeting to approve the issuance of Fairfax Shares in connection with the transaction. In the event that Fairfax is unable to proceed by written consent, a meeting of Fairfax shareholders will be convened to approve the share issuance.
The Offer documents will be made available on Fairfax's website at www.fairfax.ca and will also be available on EDGAR at www.sec.gov. Further information regarding the transaction, including a copy of the Agreement, will be available on Fairfax's website at www.fairfax.ca, on Allied World's website at www.awac.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
BofA Merrill Lynch is acting as exclusive financial advisor to Allied World. Fairfax retained Shearman & Sterling LLP as United States legal counsel, Torys LLP as Canadian legal counsel and Homburger AG as Swiss legal counsel. Willkie Farr & Gallagher LLP is acting as United States legal counsel to Allied World and Baker & McKenzie LLP and Walder Wyss Ltd are acting as Swiss legal counsel to Allied World.
Conference Call Information
Fairfax and Allied World will hold a joint conference call to discuss the Offer at 8 a.m. Eastern time on Monday, December 19, 2016. The call, consisting of a joint presentation by Fairfax and Allied World followed by a question period, may be accessed at 1-888-996-4915 (Canada or U.S.) or 1-210-234-0014 (International) with the passcode "FAIRFAX". A replay of the call will be available from shortly after the termination of the call until 5:00 p.m. Eastern time on January 9, 2017. The replay may be accessed at 1-866-427-6404 (Canada or U.S.) or 1-203-369-0894 (International).
About Fairfax
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
About Allied World
Allied World, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and AA- by Fitch.
IMPORTANT INFORMATION AND WHERE TO FIND IT
This announcement is for informational purposes only and does not constitute or form part of an offer to sell or exchange or the solicitation of an offer to buy, exchange or subscribe to any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, or an exemption therefrom.
In connection with the exchange offer for all of the outstanding registered ordinary shares of Allied World, Fairfax expects to file a registration statement on Form F-4, which will include a prospectus and proxy statement of Allied World (the "prospectus/proxy statement"), and a Tender Offer statement on Schedule TO (the "Schedule TO"), and may file amendments thereto, and soon thereafter Allied World will file a Solicitation / Recommendation Statement on Schedule 14D-9 with respect to the exchange offer and may file amendments thereto. The exchange offer has not yet commenced. The exchange offer will be made exclusively by means of, and subject to, the terms and conditions set out in, an offer document containing and setting out the terms and conditions of the offer and a letter of transmittal to be delivered to Allied World, filed with the United States Securities and Exchange Commission (the "SEC") and mailed to Allied World shareholders. The exchange offer will be made by Fairfax or an affiliate of Fairfax and not by any other person.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
SHAREHOLDERS OF ALLIED WORLD ARE URGED TO READ ANY DOCUMENTS REGARDING THE EXCHANGE OFFER CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE (INCLUDING THE EXHIBITS THERETO) AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER.
The registration statement, the Schedule TO and other related documents in relation to the exchange offer, as well as Fairfax's other public filings with the SEC, may be obtained without charge at the SEC's website, www.sec.gov, after they have been filed. Any materials filed with the SEC may also be obtained without charge at Fairfax's website, www.fairfax.ca. This material is not a substitute for the registration statement, the Schedule TO and other related documents in relation to the exchange offer that will be filed with the SEC or sent to shareholders in connection with the proposed transactions.
The proxy statement and any other relevant documents filed by Allied World with the SEC, as well as any amendments or supplements to those documents and Allied World's other public filings with the SEC, may be obtained without charge at the SEC's website, www.sec.gov, after they have been filed. Any materials filed with the SEC may also be obtained without charge at Allied World's website, www.awac.com.
This announcement does not constitute an offer or a solicitation in any jurisdiction in which such offer or solicitation is unlawful. An offer will not be made in, nor will deposits be accepted in, any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction. However, Fairfax may, in its sole discretion, take such action as it may deem necessary to extend an offer in any such jurisdiction.
PARTICIPANTS IN THE SOLICITATION
Fairfax and Allied World and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies from Allied World's and, if necessary, Fairfax's shareholders in favour of the proposed transactions. Information about Allied World's directors and executive officers and their ownership in Allied World common stock is available in the proxy statement dated March 10, 2016 for Allied World's 2016 annual general meeting of shareholders. Information about Fairfax's directors and executive officers and their ownership of Fairfax common stock is available in the management proxy circular dated March 11, 2016 for Fairfax's 2016 annual general meeting of shareholders. Additional information regarding participants in the proxy solicitation may be obtained by reading the joint proxy statement/prospectus when it becomes available.
Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements within the meaning of applicable Canadian and United States securities laws and are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These include statements using the words "believe", "expect", "seek", "target", "outlook", "may", "will", "should", "could", "estimate", "continue", "expect", "intend", "plan", "predict", "potential", "project" and "anticipate", and similar statements which do not describe the present or provide information about the past. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax, Allied World or the combined company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the current views of management of Fairfax and Allied World and are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, corporate approvals, regulatory approvals, operational factors and other factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. All forward-looking statements attributable to Fairfax and Allied World, or persons acting on their behalf, are expressly qualified in their entirety by the cautionary statements set forth in this paragraph. Undue reliance should not be placed on such statements, which speak only as of the date they are made. Such factors include, but are not limited to: the failure to complete the Offer and/or the Merger or to complete them on the currently proposed terms; a reduction in net earnings if loss reserves of the combined company are insufficient; underwriting losses on the risks the combined company insures that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity exceeding Fairfax's or Allied World's estimates; negative rating agency actions; changes in market variables, including interest rates, foreign exchange rates, equity prices and credit spreads, which could negatively affect the combined company's investment portfolio; the cycles of the insurance and reinsurance markets and general economic conditions, which can substantially influence the combined company and its competitors' premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims;
exposure to credit risk in the event the combined company's reinsurers fail to make payments to the combined company under its reinsurance arrangements; exposure to credit risk in the event the combined company's insureds, insurance producers or reinsurance intermediaries fail to remit premiums that are owed to the combined company or failure by the combined company's insureds to reimburse the combined company for deductibles that are paid by the combined company on their behalf; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated; the inability of the combined company's subsidiaries to maintain financial or claims paying ability ratings; risks associated with implementing the combined company's business strategies; risks associated with the use of derivative instruments; the failure of hedging methods to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased competition in the insurance industry; the impact of emerging claim and coverage issues; the failure of any of the loss limitation methods that the combined company employs; the combined company's inability to access cash of its subsidiaries; the combined company's inability to obtain required levels of capital on favourable terms, if at all; loss of key employees; the combined company's inability to obtain reinsurance or retrocessional coverage in sufficient amounts, at reasonable prices or on terms that adequately protect it; the passage of legislation subjecting the combined company's businesses to additional supervision or regulation, including additional tax regulation, in the United States, Canada or other jurisdictions in which it operates; the impact of acts of terrorism and acts of war; risks associated with government investigations of, and litigation and negative publicity related to,
insurance industry practice or any other conduct; risks associated with political and other developments in foreign jurisdictions in which the combined company operates; risks associated with legal or regulatory proceedings; failures or security breaches of the combined company's computer and data processing systems; the influence exercisable by the combined company's significant shareholder; adverse fluctuations in foreign currency exchange rates; dependence on independent brokers over whom the combined company exercises little control; an impairment in the carrying value of the combined company's goodwill and indefinite-lived intangible assets; the combined company's failure to realize deferred income tax assets; assessments and shared market mechanisms which may adversely affect its U.S. insurance subsidiaries; the ability to successfully integrate the transaction and realize certain synergies; and the combined company's ability to implement and achieve its business strategies successfully. Additional risks and uncertainties are described in: (i) Fairfax's most recently issued Annual Report which is available at www.fairfax.ca and in its Supplemental and Base Shelf Prospectus (under "Risk Factors") filed with the securities regulatory authorities in Canada, which is available on SEDAR at www.sedar.com; and (ii) Allied World's most recently issued Annual Report filed on Form 10-K, which is available on EDGAR at www.sec.gov. Each of Fairfax and Allied World disclaims any intention or obligation to update or revise any forward-looking statements and undertakes no obligation to release publicly the results of any future revisions to the forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
There can be no assurance that the Offer and/or the Merger will occur or that the anticipated benefits of the Offer and Merger will be realized. The completion of the Offer and the Merger is subject to various approvals, including competition, antitrust and insurance regulatory approvals.
Fairfax
Paul Rivett
President
(416) 367-4941
Fairfax
John Varnell
Vice President, Corporate Development
(416) 367-4941
Allied World
Thomas Bradley
Executive Vice President & Chief Financial Officer
(646) 794-0509
Source: Fairfax Financial Holdings Limited and Allied World
- wong chee tat :)
12/18/2016
Download this Press Release (PDF 214 KB)
TORONTO, ONTARIO and ZUG, SWITZERLAND -- (Marketwired) -- 12/18/16 --
(Unless otherwise provided herein, all dollar amounts in this announcement are expressed in U.S. dollars)
Highlights:
Cash and share offer with dividend for total value of $54.00 per Allied World share - $10.00 in cash and $44.00 in Fairfax Shares
18% premium to the last close per Allied World share
Fairfax has the option to increase the total cash payable to Allied World shareholders by up to $30.00 per Allied World share, for a total of $40.00 cash per Allied World share
Offer unanimously supported by the Allied World board
Combination of Allied World and Fairfax creates a world leader in property and casualty insurance, reinsurance and investments (more details in investor presentation at http://www.fairfax.ca/Investors/Allied_World/default.aspx)
Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) and Allied World Assurance Company Holdings, AG ("Allied World") (NYSE:AWH) are pleased to announce that they have entered into a merger agreement (the "Agreement"), pursuant to which Fairfax will acquire all of the outstanding registered ordinary shares of Allied World (the "Allied World Shares"). Under the terms of the Agreement, based on Friday's closing stock price on the TSX for Fairfax of C$614.45 ($460.65), Allied World shareholders would receive a combination of Fairfax subordinate voting shares (the "Fairfax Shares") and cash equal to $54.00 per Allied World Share, for a total equity value of approximately $4.9 billion. The $54.00 per share offer price represents a premium of 18% to the closing price of $45.77 per Allied World Share on December 16, 2016, being the last business day prior to this announcement. The transaction has been unanimously approved by the boards of directors of both companies.
Allied World's position as a market-leading global property, casualty and specialty insurer and reinsurer, its major worldwide presence and its disciplined approach to underwriting make it a natural candidate to join Fairfax's expanding worldwide operations. Allied World's growing international reach is highly complementary to Fairfax's existing worldwide operations and the acquisition further diversifies Fairfax's group risk portfolio. In addition, Allied World will be able to leverage Fairfax's expertise in Canada, the United States and international insurance and reinsurance markets, thus enhancing Allied World's global product offering and providing it with expanded underwriting opportunities and support.
"We are excited to have Allied World join the Fairfax group," said Prem Watsa, Chairman and CEO of Fairfax. "Allied World is a high-quality company with an excellent long-term track record and an outstanding management team led by Scott Carmilani. Allied World will operate within the Fairfax group on a decentralized basis after closing, and we are looking forward to supporting Scott and the entire team at Allied World in growing their business over the long-term."
"This is a tremendous opportunity for Allied World," said Scott Carmilani, President, CEO and Chairman of Allied World. "Our shareholders are being rewarded for the strong performance of Allied World over the last 10 years since going public. We are strategically aligning ourselves with Fairfax, one of the premier companies in the insurance industry which has a great track record of supporting their operating companies and creating value for shareholders. We are excited to be joining the Fairfax organization - we share their passion for underwriting excellence and their entrepreneurial approach to growing the business with a long-term orientation. Our shareholders will benefit from Fairfax's tremendous investment capabilities as demonstrated by its superior long-term investment track record. The success of Fairfax's decentralized approach in empowering their management teams to drive profitable underwriting and combining Fairfax's investment philosophy will position us to create long-term value for shareholders. Fairfax provides a great home for Allied World to continue to build a strong business for our customers, business partners and employees."
Transaction Summary
Under the terms of the Agreement, Allied World shareholders will receive cash consideration of $10.00 for each Allied World Share, $5.00 of which will be paid in the form of a pre-closing cash dividend by Allied World. A portion of the stock consideration, having a value of $14.00 based on the closing price of Fairfax Shares as of December 16, 2016 (the "Fairfax Closing Price"), is payable at a fixed exchange ratio of 0.030392. The remaining portion of the stock consideration to Allied World will be a number of Fairfax Shares with a value equal to $30.00, with such number of Fairfax Shares determined based on the volume weighted average closing price of Fairfax Shares for the 20 trading days ending on the day prior to closing (provided that this volume weighted average price is no less than $435.65 and no greater than $485.65 per share, $25.00 below and above the Fairfax Closing Price, respectively). If the volume weighted average price of Fairfax Shares during this period is above $485.65, the stock portion of the consideration will be fixed at 0.061772 Fairfax Shares for each share of Allied World, and if it is below $435.65 per share, the stock portion of the consideration will be fixed at 0.068862 Fairfax Shares for each share of Allied World. Additionally, on or before 75 days after the date of the Agreement, Fairfax has the option to replace on a dollar-for-dollar basis this portion of the stock consideration with cash in an amount up to $30.00 per Allied World Share, together with the dividend, for up to a total cash consideration of $40.00 per Allied World Share. Fairfax may elect to fund the $30.00 in cash by an equity or debt issuance or by bringing in third party partners.
It is intended that the transaction will be effected by way of an exchange offer (the "Offer"), followed by a squeeze-out merger (the "Merger"), both in accordance with the applicable laws.
The transaction is subject to a sufficient number of the outstanding Allied World Shares having been tendered in the Offer, approval by Allied World shareholders and, to the extent required by applicable regulations, Fairfax shareholders, approvals from applicable regulators and satisfaction of other customary closing conditions. Closing of the transaction is currently expected to occur in the second quarter of 2017.
In accordance with section 611(c) of the Toronto Stock Exchange ("TSX") Company Manual, the transaction will require the approval of Fairfax shareholders by a majority vote since the Fairfax Shares issued in the transaction will exceed 25% of the total number of outstanding Fairfax Shares (assuming Fairfax does not exercise its option to replace part of the share consideration with cash). Prem Watsa, Fairfax's Chairman and CEO, and The Sixty Two Investment Company Limited ("Sixty Two"), a company controlled by Prem Watsa, who collectively hold an aggregate voting interest in Fairfax of approximately 43%, have signed a voting support agreement in favour of the Fairfax share issuance necessary in connection with the transaction. Fairfax intends to seek written consents from other shareholders of Fairfax that, together with the votes represented by the shares held by Prem Watsa and Sixty Two, represent more than 50% of the votes attached to all multiple and subordinate voting shares of Fairfax and will request that the TSX accept these written consents to support the transaction as evidence of shareholder approval and not require Fairfax to hold a shareholders' meeting to approve the issuance of Fairfax Shares in connection with the transaction. In the event that Fairfax is unable to proceed by written consent, a meeting of Fairfax shareholders will be convened to approve the share issuance.
The Offer documents will be made available on Fairfax's website at www.fairfax.ca and will also be available on EDGAR at www.sec.gov. Further information regarding the transaction, including a copy of the Agreement, will be available on Fairfax's website at www.fairfax.ca, on Allied World's website at www.awac.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
BofA Merrill Lynch is acting as exclusive financial advisor to Allied World. Fairfax retained Shearman & Sterling LLP as United States legal counsel, Torys LLP as Canadian legal counsel and Homburger AG as Swiss legal counsel. Willkie Farr & Gallagher LLP is acting as United States legal counsel to Allied World and Baker & McKenzie LLP and Walder Wyss Ltd are acting as Swiss legal counsel to Allied World.
Conference Call Information
Fairfax and Allied World will hold a joint conference call to discuss the Offer at 8 a.m. Eastern time on Monday, December 19, 2016. The call, consisting of a joint presentation by Fairfax and Allied World followed by a question period, may be accessed at 1-888-996-4915 (Canada or U.S.) or 1-210-234-0014 (International) with the passcode "FAIRFAX". A replay of the call will be available from shortly after the termination of the call until 5:00 p.m. Eastern time on January 9, 2017. The replay may be accessed at 1-866-427-6404 (Canada or U.S.) or 1-203-369-0894 (International).
About Fairfax
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
About Allied World
Allied World, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Allied World offers superior client service through a global network of offices and branches. All of Allied World's rated insurance and reinsurance subsidiaries are rated A by A.M. Best Company, A by Standard & Poor's, and A2 by Moody's, and our Lloyd's Syndicate 2232 is rated A+ by Standard & Poor's and AA- by Fitch.
IMPORTANT INFORMATION AND WHERE TO FIND IT
This announcement is for informational purposes only and does not constitute or form part of an offer to sell or exchange or the solicitation of an offer to buy, exchange or subscribe to any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This announcement is not an offer of securities for sale into the United States. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, or an exemption therefrom.
In connection with the exchange offer for all of the outstanding registered ordinary shares of Allied World, Fairfax expects to file a registration statement on Form F-4, which will include a prospectus and proxy statement of Allied World (the "prospectus/proxy statement"), and a Tender Offer statement on Schedule TO (the "Schedule TO"), and may file amendments thereto, and soon thereafter Allied World will file a Solicitation / Recommendation Statement on Schedule 14D-9 with respect to the exchange offer and may file amendments thereto. The exchange offer has not yet commenced. The exchange offer will be made exclusively by means of, and subject to, the terms and conditions set out in, an offer document containing and setting out the terms and conditions of the offer and a letter of transmittal to be delivered to Allied World, filed with the United States Securities and Exchange Commission (the "SEC") and mailed to Allied World shareholders. The exchange offer will be made by Fairfax or an affiliate of Fairfax and not by any other person.
The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions.
SHAREHOLDERS OF ALLIED WORLD ARE URGED TO READ ANY DOCUMENTS REGARDING THE EXCHANGE OFFER CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE (INCLUDING THE EXHIBITS THERETO) AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE EXCHANGE OFFER.
The registration statement, the Schedule TO and other related documents in relation to the exchange offer, as well as Fairfax's other public filings with the SEC, may be obtained without charge at the SEC's website, www.sec.gov, after they have been filed. Any materials filed with the SEC may also be obtained without charge at Fairfax's website, www.fairfax.ca. This material is not a substitute for the registration statement, the Schedule TO and other related documents in relation to the exchange offer that will be filed with the SEC or sent to shareholders in connection with the proposed transactions.
The proxy statement and any other relevant documents filed by Allied World with the SEC, as well as any amendments or supplements to those documents and Allied World's other public filings with the SEC, may be obtained without charge at the SEC's website, www.sec.gov, after they have been filed. Any materials filed with the SEC may also be obtained without charge at Allied World's website, www.awac.com.
This announcement does not constitute an offer or a solicitation in any jurisdiction in which such offer or solicitation is unlawful. An offer will not be made in, nor will deposits be accepted in, any jurisdiction in which the making or acceptance thereof would not be in compliance with the laws of such jurisdiction. However, Fairfax may, in its sole discretion, take such action as it may deem necessary to extend an offer in any such jurisdiction.
PARTICIPANTS IN THE SOLICITATION
Fairfax and Allied World and their respective directors and executive officers may be deemed to be participants in any solicitation of proxies from Allied World's and, if necessary, Fairfax's shareholders in favour of the proposed transactions. Information about Allied World's directors and executive officers and their ownership in Allied World common stock is available in the proxy statement dated March 10, 2016 for Allied World's 2016 annual general meeting of shareholders. Information about Fairfax's directors and executive officers and their ownership of Fairfax common stock is available in the management proxy circular dated March 11, 2016 for Fairfax's 2016 annual general meeting of shareholders. Additional information regarding participants in the proxy solicitation may be obtained by reading the joint proxy statement/prospectus when it becomes available.
Forward-Looking Statements
Certain statements contained herein may constitute forward-looking statements within the meaning of applicable Canadian and United States securities laws and are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These include statements using the words "believe", "expect", "seek", "target", "outlook", "may", "will", "should", "could", "estimate", "continue", "expect", "intend", "plan", "predict", "potential", "project" and "anticipate", and similar statements which do not describe the present or provide information about the past. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax, Allied World or the combined company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the current views of management of Fairfax and Allied World and are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, corporate approvals, regulatory approvals, operational factors and other factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations. All forward-looking statements attributable to Fairfax and Allied World, or persons acting on their behalf, are expressly qualified in their entirety by the cautionary statements set forth in this paragraph. Undue reliance should not be placed on such statements, which speak only as of the date they are made. Such factors include, but are not limited to: the failure to complete the Offer and/or the Merger or to complete them on the currently proposed terms; a reduction in net earnings if loss reserves of the combined company are insufficient; underwriting losses on the risks the combined company insures that are higher or lower than expected; the occurrence of catastrophic events with a frequency or severity exceeding Fairfax's or Allied World's estimates; negative rating agency actions; changes in market variables, including interest rates, foreign exchange rates, equity prices and credit spreads, which could negatively affect the combined company's investment portfolio; the cycles of the insurance and reinsurance markets and general economic conditions, which can substantially influence the combined company and its competitors' premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims;
exposure to credit risk in the event the combined company's reinsurers fail to make payments to the combined company under its reinsurance arrangements; exposure to credit risk in the event the combined company's insureds, insurance producers or reinsurance intermediaries fail to remit premiums that are owed to the combined company or failure by the combined company's insureds to reimburse the combined company for deductibles that are paid by the combined company on their behalf; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated; the inability of the combined company's subsidiaries to maintain financial or claims paying ability ratings; risks associated with implementing the combined company's business strategies; risks associated with the use of derivative instruments; the failure of hedging methods to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased competition in the insurance industry; the impact of emerging claim and coverage issues; the failure of any of the loss limitation methods that the combined company employs; the combined company's inability to access cash of its subsidiaries; the combined company's inability to obtain required levels of capital on favourable terms, if at all; loss of key employees; the combined company's inability to obtain reinsurance or retrocessional coverage in sufficient amounts, at reasonable prices or on terms that adequately protect it; the passage of legislation subjecting the combined company's businesses to additional supervision or regulation, including additional tax regulation, in the United States, Canada or other jurisdictions in which it operates; the impact of acts of terrorism and acts of war; risks associated with government investigations of, and litigation and negative publicity related to,
insurance industry practice or any other conduct; risks associated with political and other developments in foreign jurisdictions in which the combined company operates; risks associated with legal or regulatory proceedings; failures or security breaches of the combined company's computer and data processing systems; the influence exercisable by the combined company's significant shareholder; adverse fluctuations in foreign currency exchange rates; dependence on independent brokers over whom the combined company exercises little control; an impairment in the carrying value of the combined company's goodwill and indefinite-lived intangible assets; the combined company's failure to realize deferred income tax assets; assessments and shared market mechanisms which may adversely affect its U.S. insurance subsidiaries; the ability to successfully integrate the transaction and realize certain synergies; and the combined company's ability to implement and achieve its business strategies successfully. Additional risks and uncertainties are described in: (i) Fairfax's most recently issued Annual Report which is available at www.fairfax.ca and in its Supplemental and Base Shelf Prospectus (under "Risk Factors") filed with the securities regulatory authorities in Canada, which is available on SEDAR at www.sedar.com; and (ii) Allied World's most recently issued Annual Report filed on Form 10-K, which is available on EDGAR at www.sec.gov. Each of Fairfax and Allied World disclaims any intention or obligation to update or revise any forward-looking statements and undertakes no obligation to release publicly the results of any future revisions to the forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
There can be no assurance that the Offer and/or the Merger will occur or that the anticipated benefits of the Offer and Merger will be realized. The completion of the Offer and the Merger is subject to various approvals, including competition, antitrust and insurance regulatory approvals.
Fairfax
Paul Rivett
President
(416) 367-4941
Fairfax
John Varnell
Vice President, Corporate Development
(416) 367-4941
Allied World
Thomas Bradley
Executive Vice President & Chief Financial Officer
(646) 794-0509
Source: Fairfax Financial Holdings Limited and Allied World
- wong chee tat :)
Monday, December 19, 2016
Fairfax Financial to buy Allied World for $4.9 billion in cash and stock
Fairfax Financial to buy Allied World for $4.9 billion in cash and stock
PUBLISHED: 10:20 AM, DECEMBER 19, 2016 UPDATED: 1:50 PM, DECEMBER 19, 2016
Toronto-based insurance group Fairfax Financial Holdings Ltd has agreed to buy Swiss insurer Allied World Assurance Company Holdings AG for $4.9 billion in cash and stock, the companies said on Sunday.
Fairfax will pay owners of Allied World $54 per share - $10 in cash and $44 in Fairfax stock. The offer amounts to an 18 percent premium above Allied World's Friday closing price of $45.77, their news release said.
The merger would create a leader in property and casualty insurance, reinsurance and investments, the release said. Boards of directors of both companies approved the deal.
Allied World would operate "on a decentralized basis" within the Fairfax group, Prem Watsa, chief executive of Fairfax, said in the release.
Fairfax said it expected to close the deal in the second quarter of 2017.
REUTERS
- wong chee tat :)
PUBLISHED: 10:20 AM, DECEMBER 19, 2016 UPDATED: 1:50 PM, DECEMBER 19, 2016
Toronto-based insurance group Fairfax Financial Holdings Ltd has agreed to buy Swiss insurer Allied World Assurance Company Holdings AG for $4.9 billion in cash and stock, the companies said on Sunday.
Fairfax will pay owners of Allied World $54 per share - $10 in cash and $44 in Fairfax stock. The offer amounts to an 18 percent premium above Allied World's Friday closing price of $45.77, their news release said.
The merger would create a leader in property and casualty insurance, reinsurance and investments, the release said. Boards of directors of both companies approved the deal.
Allied World would operate "on a decentralized basis" within the Fairfax group, Prem Watsa, chief executive of Fairfax, said in the release.
Fairfax said it expected to close the deal in the second quarter of 2017.
REUTERS
- wong chee tat :)
Monday, July 25, 2016
Monday, June 13, 2016
Opportunities for insurers to cover risks from cyber attacks, natural disasters: Tharman
Opportunities for insurers to cover risks from cyber attacks, natural disasters: Tharman
Deputy Prime Minister Tharman Shanmugaratnam cites growth areas in the region that insurers can tap, including providing insurance solutions for cyber and natural disaster risks as well as investing in infrastructure.
By Nicole Tan
Posted 13 Jun 2016 21:54 Updated 13 Jun 2016 22:06
SINGAPORE: There are opportunities for insurers in financing infrastructure and providing insurance for cyber attacks and natural disasters, despite the challenge of persistently low interest rates, said Deputy Prime Minister and Coordinating Minister for Economic and Social Policies Tharman Shanmugaratnam.
He was speaking at the International Insurance Society Global Insurance Forum on Monday (Jun 13).
Mr Tharman cited growth areas in the region that insurers can tap, including providing insurance solutions for cyber and natural disaster risks, as well as investing in infrastructure.
To enable long-term investments, such as for infrastructure, Mr Tharman said the Monetary Authority of Singapore is seeking to modify its risk-based capital framework for insurers. He said the next public consultation on this will be held at the end of the month.
Mr Tharman also noted that the economic cost of natural disasters is growing but that the take-up of catastrophe insurance in Asia has been "woefully low". The Deputy Prime Minister pointed to a data gap: "The industry needs good data on the frequency, location and economic impact of natural disasters, so that insurers and reinsurers can price risks adequately. So we have had a limited supply of insurance coverage, that has itself led to higher cost of protection, which in turn discourages demand for insurance against catastrophe risks."
Likewise, Mr Tharman noted that the data needed for the efficient underwriting of cyber risk is "weak". He said: "We need to strengthen collaboration between the industry, government and academia to build reliable databases and analytical tools to enable the efficient underwriting of cyber risk."
ACTIVE INVESTMENT MANAGEMENT 'NOT ALL IT HAS BEEN CRACKED UP TO BE'
As populations age, individuals need to save more for a longer retirement. Meanwhile, slower economic growth is weighing on investment. Mr Tharman said higher savings and lower investment suggest that long-term real interest rates are likely to stay low for quite some time to come. He added that this poses a challenge for insurance and pension funds.
He said: “It hits you on both your assets and your liabilities. It means a lower return on your assets. And it pushes up the value of liabilities because the discount rate has gone down. It is not a temporary challenge but a long-term challenge.
"As life expectancy goes up, liabilities will be pushed out further, and the gap in maturity between your liabilities and your assets is likely to grow. This mismatch in durations, together with low interest rates, means we have a growing problem."
Going forward, Mr Tharman said fundamental reforms are needed to address the challenges, such as making the workplace more attractive to older employees.
As for the finance industry, he said there should be a shift towards passive investment management, away from active management which has proven costly for ordinary savers.
Mr Tharman said: “Active management is not all it has been cracked up to be: it has not proven its worth for most ordinary savers preparing for their retirement. We do have to move towards a system, in a whole range of countries, of helping people save for the long term through passive investment funds, and pool savings to avoid fragmentation and excessive marketing costs.”
- CNA/ms
- wong chee tat :)
Deputy Prime Minister Tharman Shanmugaratnam cites growth areas in the region that insurers can tap, including providing insurance solutions for cyber and natural disaster risks as well as investing in infrastructure.
By Nicole Tan
Posted 13 Jun 2016 21:54 Updated 13 Jun 2016 22:06
SINGAPORE: There are opportunities for insurers in financing infrastructure and providing insurance for cyber attacks and natural disasters, despite the challenge of persistently low interest rates, said Deputy Prime Minister and Coordinating Minister for Economic and Social Policies Tharman Shanmugaratnam.
He was speaking at the International Insurance Society Global Insurance Forum on Monday (Jun 13).
Mr Tharman cited growth areas in the region that insurers can tap, including providing insurance solutions for cyber and natural disaster risks, as well as investing in infrastructure.
To enable long-term investments, such as for infrastructure, Mr Tharman said the Monetary Authority of Singapore is seeking to modify its risk-based capital framework for insurers. He said the next public consultation on this will be held at the end of the month.
Mr Tharman also noted that the economic cost of natural disasters is growing but that the take-up of catastrophe insurance in Asia has been "woefully low". The Deputy Prime Minister pointed to a data gap: "The industry needs good data on the frequency, location and economic impact of natural disasters, so that insurers and reinsurers can price risks adequately. So we have had a limited supply of insurance coverage, that has itself led to higher cost of protection, which in turn discourages demand for insurance against catastrophe risks."
Likewise, Mr Tharman noted that the data needed for the efficient underwriting of cyber risk is "weak". He said: "We need to strengthen collaboration between the industry, government and academia to build reliable databases and analytical tools to enable the efficient underwriting of cyber risk."
ACTIVE INVESTMENT MANAGEMENT 'NOT ALL IT HAS BEEN CRACKED UP TO BE'
As populations age, individuals need to save more for a longer retirement. Meanwhile, slower economic growth is weighing on investment. Mr Tharman said higher savings and lower investment suggest that long-term real interest rates are likely to stay low for quite some time to come. He added that this poses a challenge for insurance and pension funds.
He said: “It hits you on both your assets and your liabilities. It means a lower return on your assets. And it pushes up the value of liabilities because the discount rate has gone down. It is not a temporary challenge but a long-term challenge.
"As life expectancy goes up, liabilities will be pushed out further, and the gap in maturity between your liabilities and your assets is likely to grow. This mismatch in durations, together with low interest rates, means we have a growing problem."
Going forward, Mr Tharman said fundamental reforms are needed to address the challenges, such as making the workplace more attractive to older employees.
As for the finance industry, he said there should be a shift towards passive investment management, away from active management which has proven costly for ordinary savers.
Mr Tharman said: “Active management is not all it has been cracked up to be: it has not proven its worth for most ordinary savers preparing for their retirement. We do have to move towards a system, in a whole range of countries, of helping people save for the long term through passive investment funds, and pool savings to avoid fragmentation and excessive marketing costs.”
- CNA/ms
- wong chee tat :)
Saturday, March 19, 2016
Singapore's general insurance industry saw premiums rise to S$3.6b in 2015
Singapore's general insurance industry saw premiums rise to S$3.6b in 2015
However, there was a 17 per cent drop in total underwriting profit to S$325 million amid the slowing economy and increased competition.
By Nicole Tan
Posted 17 Mar 2016 10:54 Updated 17 Mar 2016 23:59
SINGAPORE: Singapore's general insurance industry posted a 2.6 per cent growth in total gross premiums to S$3.6 billion in 2015.
However, margins declined amid the economic slowdown and increased competition, resulting in a 17 per cent drop in total underwriting profit to S$325 million, according to the General Insurance Association on Thursday (Mar 17).
Underwriting profit is the amount of premiums earned after claims have been paid and administrative expenses accounted for.
The motor insurance class, which makes up 32 per cent of the general market, saw a 4 per cent drop in gross premiums to S$1.1 billion in 2015, due to heightened competition and the falling car population. On average, motor premiums fell by about 3 per cent, partially accounting for the 20 per cent fall in underwriting profit.
Meanwhile, underwriting profit in the work injury compensation class jumped 92 per cent, while profits fell in both the fire and personal accident segments.
Looking ahead, the General Insurance Association expects personal accident and health insurance lines to grow moderately as consumers become more aware in coping with rising medical costs and growth in overseas travel.
However, motor revenue is expected to continue falling due to intense competition among current insurers and new entrants.
- CNA/kk
- wong chee tat :)
However, there was a 17 per cent drop in total underwriting profit to S$325 million amid the slowing economy and increased competition.
By Nicole Tan
Posted 17 Mar 2016 10:54 Updated 17 Mar 2016 23:59
SINGAPORE: Singapore's general insurance industry posted a 2.6 per cent growth in total gross premiums to S$3.6 billion in 2015.
However, margins declined amid the economic slowdown and increased competition, resulting in a 17 per cent drop in total underwriting profit to S$325 million, according to the General Insurance Association on Thursday (Mar 17).
Underwriting profit is the amount of premiums earned after claims have been paid and administrative expenses accounted for.
The motor insurance class, which makes up 32 per cent of the general market, saw a 4 per cent drop in gross premiums to S$1.1 billion in 2015, due to heightened competition and the falling car population. On average, motor premiums fell by about 3 per cent, partially accounting for the 20 per cent fall in underwriting profit.
Meanwhile, underwriting profit in the work injury compensation class jumped 92 per cent, while profits fell in both the fire and personal accident segments.
Looking ahead, the General Insurance Association expects personal accident and health insurance lines to grow moderately as consumers become more aware in coping with rising medical costs and growth in overseas travel.
However, motor revenue is expected to continue falling due to intense competition among current insurers and new entrants.
- CNA/kk
- wong chee tat :)
Tuesday, January 5, 2016
DBS, Manulife tie-up takes aim at Asia’s growing insurance market
DBS, Manulife tie-up takes aim at Asia’s growing insurance market
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in," Mr Richard Vargo, regional head of bancassurance at DBS Bank says.
By Tang See Kit, Channel NewsAsia
Posted 05 Jan 2016 14:44
SINGAPORE: The official launch of a 15-year regional distribution deal between Singapore’s DBS Bank and Canadian insurer Manulife Financial Asia on Tuesday (Jan 5) marks the latest move by companies aiming to gain access into one of the world’s fastest-growing life-insurance markets.
Mr Richard Vargo, regional head of bancassurance at DBS Bank, said at the press conference on Tuesday: “The middle class in this part of the world will expand by more than three times to 1.8 billion by 2020.”
Despite this explosive growth, Asia remains largely under-insured, Mr Vargo added.
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in,” he said.
Manulife's chief financial officer Steve Roder agreed, noting that "Asia is fundamentally important" to the Canadian life insurer.
"The deal is expected to add materially to insurance sales in Asia from the first year and improve the bank's insurance position especially in Singapore," said Mr Roder, adding that the agreement could catapult Singapore into Manulife's third leading market in Asia, behind Hong Kong and Japan.
Manulife also expects the partnership to help boost core earnings per share in 2017.
The access to DBS' large and growing retail, wealth and small and medium enterprise (SME) customer base of six million will help Manulife to "deepen and diversify its distribution, while increasing scale and capabilities", added Mr Roder.
S$100M PLUNGE INTO DIGITAL TECH
Both companies also announced plans to make "mutual long-term commitments and investments", such as co-funding up to S$100 million over the next 15 years into digital technology and innovation enhancements plans.
Manulife noted the emphasis on digital enhancements is in line with the changes of how consumers now access banking services. Mobile banking platforms, for instance, are particularly popular in China.
"We want to take bank insurance to the next level in Asia and be the most advanced bank insurance platform in the region," Mr Roder said.
DBS Group Head of Consumer Banking and Wealth Management Tan Su Shan agreed, noting that there is also a shift from Internet to mobile among consumers in Singapore and that it is "imperative to ensure that the digital journey is seamless".
According to a joint filing to the Singapore Exchange in April 2015, Manulife will pay DBS an initial payment of US$1.2 billion, as well as additional variable payments based on the success of the bancassurance partnership. The bancassurance model refers to insurance products distributed through a bank's branch network rather than through individual insurance agents.
Manulife is taking over UK insurer Aviva, which was the primary distributor of insurance products via DBS' Asian branch network since 2001.
Global insurers keen to tap into one of the world's fastest-growing life insurance markets have been courting Asian lenders over the years, offering attractive prices for multi-year exclusive access to the banks' branch networks across the region.
Prudential last year renewed a 15-year distribution agreement with Standard Chartered. This came on the back of AIA Group inking a 15-year exclusive deal with Citibank to distribute its insurance products via the lender's Asia-Pacific retail branch network in 2013.
The billion-dollar tie-up between DBS and Manulife is reportedly the last major agreement of its kind until HSBC considers a new deal in 2022, according to Reuters.
- CNA/av
- wong chee tat :)
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in," Mr Richard Vargo, regional head of bancassurance at DBS Bank says.
By Tang See Kit, Channel NewsAsia
Posted 05 Jan 2016 14:44
SINGAPORE: The official launch of a 15-year regional distribution deal between Singapore’s DBS Bank and Canadian insurer Manulife Financial Asia on Tuesday (Jan 5) marks the latest move by companies aiming to gain access into one of the world’s fastest-growing life-insurance markets.
Mr Richard Vargo, regional head of bancassurance at DBS Bank, said at the press conference on Tuesday: “The middle class in this part of the world will expand by more than three times to 1.8 billion by 2020.”
Despite this explosive growth, Asia remains largely under-insured, Mr Vargo added.
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in,” he said.
Manulife's chief financial officer Steve Roder agreed, noting that "Asia is fundamentally important" to the Canadian life insurer.
"The deal is expected to add materially to insurance sales in Asia from the first year and improve the bank's insurance position especially in Singapore," said Mr Roder, adding that the agreement could catapult Singapore into Manulife's third leading market in Asia, behind Hong Kong and Japan.
Manulife also expects the partnership to help boost core earnings per share in 2017.
The access to DBS' large and growing retail, wealth and small and medium enterprise (SME) customer base of six million will help Manulife to "deepen and diversify its distribution, while increasing scale and capabilities", added Mr Roder.
S$100M PLUNGE INTO DIGITAL TECH
Both companies also announced plans to make "mutual long-term commitments and investments", such as co-funding up to S$100 million over the next 15 years into digital technology and innovation enhancements plans.
Manulife noted the emphasis on digital enhancements is in line with the changes of how consumers now access banking services. Mobile banking platforms, for instance, are particularly popular in China.
"We want to take bank insurance to the next level in Asia and be the most advanced bank insurance platform in the region," Mr Roder said.
DBS Group Head of Consumer Banking and Wealth Management Tan Su Shan agreed, noting that there is also a shift from Internet to mobile among consumers in Singapore and that it is "imperative to ensure that the digital journey is seamless".
According to a joint filing to the Singapore Exchange in April 2015, Manulife will pay DBS an initial payment of US$1.2 billion, as well as additional variable payments based on the success of the bancassurance partnership. The bancassurance model refers to insurance products distributed through a bank's branch network rather than through individual insurance agents.
Manulife is taking over UK insurer Aviva, which was the primary distributor of insurance products via DBS' Asian branch network since 2001.
Global insurers keen to tap into one of the world's fastest-growing life insurance markets have been courting Asian lenders over the years, offering attractive prices for multi-year exclusive access to the banks' branch networks across the region.
Prudential last year renewed a 15-year distribution agreement with Standard Chartered. This came on the back of AIA Group inking a 15-year exclusive deal with Citibank to distribute its insurance products via the lender's Asia-Pacific retail branch network in 2013.
The billion-dollar tie-up between DBS and Manulife is reportedly the last major agreement of its kind until HSBC considers a new deal in 2022, according to Reuters.
- CNA/av
- wong chee tat :)
Friday, November 13, 2015
Tuesday, April 7, 2015
No-commission insurance policies now available
No-commission insurance policies now available
By Angela Teng and Chloe Wang
POSTED: 07 Apr 2015 14:15
UPDATED: 07 Apr 2015 21:58
TODAY reports: An online portal was also launched so consumers can compare insurance products on the markets more easily.
SINGAPORE: Consumers can buy basic life insurance policies directly from insurance companies at customer service centres or websites, without going through financial advisers and incurring commissions, from Tuesday (Apr 7).
The Direct Purchase Insurance (DPI) initiative, which was implemented by the Monetary Authority of Singapore (MAS), comprises term life insurance products with total and permanent disability (TPD) cover; whole life insurance products with TPD cover; and optional critical illness rider attached to term life or whole life insurance products.
The initiative is designed to meet the basic protection needs of individuals, and comes without financial advice.
COMPAREFIRST ONLINE PORTAL LAUNCHED
An online portal www.comparefirst.sg was also launched to allow consumers to compare insurance products on the market and pick the one that best suits them.
The portal was set up by the Life Insurance Association Singapore (LIA), MAS, Consumers Association of Singapore and MoneySENSE. It features five categories of insurance products: Term life insurance, whole life insurance, endowment policies, DPIs, and investment-linked life insurance policies. A dozen insurance companies are listed on the web aggregator, such as AIA Singapore, AXA Life Insurance, Aviva, Great Eastern Life Assurance, NTUC Income and Prudential.
LIA said that its priority is to "help individuals make better informed choices when making their purchase of life insurance products".
For instance, a 30-year-old man looking for term life insurance till he is 65 will need to fill in a few fields, and the web portal will show the key features and premiums for similar products offered by various insurers on a single screen.
LIA said the move could help to improve the take-up rate of life insurance among Singaporeans.
"Hopefully, the awareness of life insurance and understanding of insurance products will increase. With that, I think that will help to reduce the level of insurance gap among the consumers, so as a result, we hope that with this initiative, more people will come forth and access life insurance products," said Mr Khoo Kah Siang, president of the Life Insurance Association Singapore.
WEB PORTAL AIMS TO ENHANCE TRANSPARENCY, BOOST COMPETITIVENESS
The web portal is also expected to enhance transparency and boost competitiveness among life insurers, encouraging companies to further develop their own products. It could also help less well-known players in the industry to reach out to more consumers.
Said Ms Kwek Perroy Li Choo, chief marketing officer at AXA Life Singapore: "Online tools like compareFIRST would allow the lesser-known brands to be featured alongside the larger or more commonly-known brands, and customers would, for the first time, be able to see at one glance the entire list of companies that will offer a particular product that they like."
LIA added: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
compareFIRST and DPI are part of the recommendations made by the Financial Advisory Industry Review (FAIR) panel in 2013.
-TODAY/CNA/kk/dl
- wong chee tat :)
By Angela Teng and Chloe Wang
POSTED: 07 Apr 2015 14:15
UPDATED: 07 Apr 2015 21:58
TODAY reports: An online portal was also launched so consumers can compare insurance products on the markets more easily.
SINGAPORE: Consumers can buy basic life insurance policies directly from insurance companies at customer service centres or websites, without going through financial advisers and incurring commissions, from Tuesday (Apr 7).
The Direct Purchase Insurance (DPI) initiative, which was implemented by the Monetary Authority of Singapore (MAS), comprises term life insurance products with total and permanent disability (TPD) cover; whole life insurance products with TPD cover; and optional critical illness rider attached to term life or whole life insurance products.
The initiative is designed to meet the basic protection needs of individuals, and comes without financial advice.
COMPAREFIRST ONLINE PORTAL LAUNCHED
An online portal www.comparefirst.sg was also launched to allow consumers to compare insurance products on the market and pick the one that best suits them.
The portal was set up by the Life Insurance Association Singapore (LIA), MAS, Consumers Association of Singapore and MoneySENSE. It features five categories of insurance products: Term life insurance, whole life insurance, endowment policies, DPIs, and investment-linked life insurance policies. A dozen insurance companies are listed on the web aggregator, such as AIA Singapore, AXA Life Insurance, Aviva, Great Eastern Life Assurance, NTUC Income and Prudential.
LIA said that its priority is to "help individuals make better informed choices when making their purchase of life insurance products".
For instance, a 30-year-old man looking for term life insurance till he is 65 will need to fill in a few fields, and the web portal will show the key features and premiums for similar products offered by various insurers on a single screen.
LIA said the move could help to improve the take-up rate of life insurance among Singaporeans.
"Hopefully, the awareness of life insurance and understanding of insurance products will increase. With that, I think that will help to reduce the level of insurance gap among the consumers, so as a result, we hope that with this initiative, more people will come forth and access life insurance products," said Mr Khoo Kah Siang, president of the Life Insurance Association Singapore.
WEB PORTAL AIMS TO ENHANCE TRANSPARENCY, BOOST COMPETITIVENESS
The web portal is also expected to enhance transparency and boost competitiveness among life insurers, encouraging companies to further develop their own products. It could also help less well-known players in the industry to reach out to more consumers.
Said Ms Kwek Perroy Li Choo, chief marketing officer at AXA Life Singapore: "Online tools like compareFIRST would allow the lesser-known brands to be featured alongside the larger or more commonly-known brands, and customers would, for the first time, be able to see at one glance the entire list of companies that will offer a particular product that they like."
LIA added: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
compareFIRST and DPI are part of the recommendations made by the Financial Advisory Industry Review (FAIR) panel in 2013.
-TODAY/CNA/kk/dl
- wong chee tat :)
Tuesday, May 14, 2013
ElderShield claims double to S$58m between 2008 and 2012: Health Minister
ElderShield claims double to S$58m between 2008 and 2012: Health Minister
By Claire Huang
POSTED: 13 May 2013 11:36 PM
ElderShield claims have more than doubled from S$23 million to S$58 million between 2008 and 2012.
SINGAPORE: ElderShield claims have more than doubled from S$23 million to S$58 million between 2008 and 2012.
Health Minister Gan Kim Yong said in his written parliamentary reply that the number of claims in the same period also rose from 3,900 to 4,900.
He said claims are only expected to grow significantly in future as the scheme matures and more policyholders shift into the older age groups.
By end-2012, there were one million basic ElderShield policyholders. This means about 59 per cent of resident population is aged 40 to 80.
Mr Gan said the enrolment rate for ElderShield has improved over the years. In 2012, more than 92 per cent of those who turned 40 years enrolled in the insurance scheme, which provides basic protection from severe old-age disability.
Of the one million ElderShield policyholders, 26 per cent have purchased riders. Those aged above 80 are not eligible for ElderShield but may apply for coverage under the government-funded Interim Disability Assistance Program for the Elderly (IDAPE) instead.
- CNA/ac
- wong chee tat :)
By Claire Huang
POSTED: 13 May 2013 11:36 PM
ElderShield claims have more than doubled from S$23 million to S$58 million between 2008 and 2012.
SINGAPORE: ElderShield claims have more than doubled from S$23 million to S$58 million between 2008 and 2012.
Health Minister Gan Kim Yong said in his written parliamentary reply that the number of claims in the same period also rose from 3,900 to 4,900.
He said claims are only expected to grow significantly in future as the scheme matures and more policyholders shift into the older age groups.
By end-2012, there were one million basic ElderShield policyholders. This means about 59 per cent of resident population is aged 40 to 80.
Mr Gan said the enrolment rate for ElderShield has improved over the years. In 2012, more than 92 per cent of those who turned 40 years enrolled in the insurance scheme, which provides basic protection from severe old-age disability.
Of the one million ElderShield policyholders, 26 per cent have purchased riders. Those aged above 80 are not eligible for ElderShield but may apply for coverage under the government-funded Interim Disability Assistance Program for the Elderly (IDAPE) instead.
- CNA/ac
- wong chee tat :)
Thursday, March 7, 2013
Life insurance industry could see more regulatory changes
Life insurance industry could see more regulatory changes
By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms By Thomas Cho | Posted: 06 March 2013 2232 hrs
By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms
- wong chee tat :)
Wednesday, November 7, 2012
Life insurance sales post 8% rise in Q3
Life insurance sales post 8% rise in Q3
By Kristie Neo | Posted: 06 November 2012 1804 hrs
SINGAPORE : Life insurance sales in Singapore grew a modest 8 percent in the third quarter of this year, compared to a year back.
According to the Life Insurance Association of Singapore (LIA), the industry clinched S$562 million in weighted new business premiums in the three months ended September 30.
The growth was driven by annual premium sales, which rose 18 percent to S$408.6 million.
However single premium sales pulled back 13 percent to S$153.7 million.
For the first nine months of the year, weighted new business premiums hit S$1.6 billion, up 10 percent from the corresponding period the year before.
This growth was also driven by positive regular premium sales which stood at S$1.16 billion, registering a 20 percent growth over the same period.
Looking forward however, LIA says they will be taking a 'restrained' view in target estimates for the next quarter.
Mr Tan Hak Leh, President of the Life Insurance Association said: "Given the challenging economic environment, the performance of the life insurance industry for 2012 could potentially be impacted. However it is comforting to note the overall growth as well as the sustained and healthy performance of regular premium sales, which comprised long-term life insurance plans such as participating products which offer protection and savings."
This is in line with the latest review by the Monetary Authority of Singapore which indicated that the local economy is likely to see sluggish growth for the rest of the year and for 2013.
- CNA/ch
- wong chee tat :)
By Kristie Neo | Posted: 06 November 2012 1804 hrs
SINGAPORE : Life insurance sales in Singapore grew a modest 8 percent in the third quarter of this year, compared to a year back.
According to the Life Insurance Association of Singapore (LIA), the industry clinched S$562 million in weighted new business premiums in the three months ended September 30.
The growth was driven by annual premium sales, which rose 18 percent to S$408.6 million.
However single premium sales pulled back 13 percent to S$153.7 million.
For the first nine months of the year, weighted new business premiums hit S$1.6 billion, up 10 percent from the corresponding period the year before.
This growth was also driven by positive regular premium sales which stood at S$1.16 billion, registering a 20 percent growth over the same period.
Looking forward however, LIA says they will be taking a 'restrained' view in target estimates for the next quarter.
Mr Tan Hak Leh, President of the Life Insurance Association said: "Given the challenging economic environment, the performance of the life insurance industry for 2012 could potentially be impacted. However it is comforting to note the overall growth as well as the sustained and healthy performance of regular premium sales, which comprised long-term life insurance plans such as participating products which offer protection and savings."
This is in line with the latest review by the Monetary Authority of Singapore which indicated that the local economy is likely to see sluggish growth for the rest of the year and for 2013.
- CNA/ch
- wong chee tat :)
本地今年头9个月的人寿保险销售额 年比增一成
Updated: Tue, 06 Nov 2012 19:20:44 GMT
本地今年头9个月的人寿保险销售额 年比增一成
数据显示：本地今年头9个月的人寿保险销售额，年比增加一成，达到大约16亿元。
数据显示：本地今年头9个月的人寿保险销售额，年比增加一成，达到大约16亿元。
新加坡寿险协会指出：由于定期保费产品的销量取得20%的季度增长，促使这个领域的整体业绩表现良好。不过，单期保费产品的业务则下跌10%，到4亿4千7百万元；其中，14%是动用公积金来支付保费的。
协会会长陈学旅指出：整体来说，寿险业自今年初便取得稳健增长。不过，由于经济情况不明朗，协会对下一季的业绩展望将有所保留。
- wong chee tat :)
本地今年头9个月的人寿保险销售额 年比增一成
数据显示：本地今年头9个月的人寿保险销售额，年比增加一成，达到大约16亿元。
数据显示：本地今年头9个月的人寿保险销售额，年比增加一成，达到大约16亿元。
新加坡寿险协会指出：由于定期保费产品的销量取得20%的季度增长，促使这个领域的整体业绩表现良好。不过，单期保费产品的业务则下跌10%，到4亿4千7百万元；其中，14%是动用公积金来支付保费的。
协会会长陈学旅指出：整体来说，寿险业自今年初便取得稳健增长。不过，由于经济情况不明朗，协会对下一季的业绩展望将有所保留。
- wong chee tat :)
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