Hitesh Shah

Good commentary but sentiments aside - there is ZERO justification of the deal in terms of the go forward strategy and what Allianz brings to the table. The structure of the deal in and of itself is appalling - Allianz as majority shareholder will be calling the shots period. All this deal does is for shareholders to cash in on their chips- there are other mechanisms to allow this to happen instead of selling Income. Income - stay home, remain local and look after the insurance needs of all Singaporeans - you can do it as there is enough talent and capital in our country to help you to do what is right.

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MAS puts Singapore insurers come under closer watch over reinsurance contracts by requiring all insurers to submit detailed terms and conditions of their reinsurance contracts. This aligns with global concerns highlighted by the International Association of Insurance Supervisors (IAIS) regarding the risks associated with the reinsurance sector, such as increased allocation of capital to alternative assets and the use of cross-border asset-intensive reinsurance which brings about potential liquidity issues, valuation challenges, hidden leverage, and credit risks. https://lnkd.in/ghbNe8s5 #insurancelaw #Singapore #reinsurancelaw

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S. Korea’s non-life insurance sector is experiencing moderate expansion as non-life insurers focus on securing future profits under IFRS 17. https://lnkd.in/gHPUAg2Z

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A recent report from Swiss Re spotlights the high-net-worth (HNW) market in Asia Pacific as a key growth area for insurers. https://lnkd.in/gjG8iwM9 The report notes opportunities in areas such as the property sector and estate planning, with large life insurance policies gaining traction. Insurers are expanding operations, innovating products, and exploring new distribution channels to capitalise on these trends. However, the industry also faces challenges, including higher interest rates, which have affected premium financing and can also lead to increased lapses. More below 👇 #Insurance #Asia

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Aside from this clear conflict of interest, I think there are other pertinent issues to consider relating to this potential sale:- 1. The lack of information on Income’s role as a “local insurer serving the needs of Singaporeans”. How well has Income actually served this objective? Are its insurance offerings really providing the best value? What is the cumulative profits earned by Income to-date (difficult to assess as Income recently converted from a cooperative to a corporate..)? 2. Why has Income ventured into non-core insurance activities and regional expansion when this was not its core competency? The latest annual report indicated losses after tax of about $95m. Has there been an objective evaluation of this strategy? 3. Will information such as embedded value, Value of New Business and VNB margins be made available as these are pertinent information relating to the value of a life insurance business? 4. Unlike most other insurers, Income has delayed the implementation of FRS17 which should have been implemented in 2023 to 2024. No information has been made available on the impact of adopting this accounting standard, which has significant impact on the recognition of profits. 5. Is Allianz paying a sufficient premium to gain control of 51%? How can we embed clear parameters for income to remain true to its core values after ceding control? The offer is currently expressed as a premium over NTA when this more aptly associated with a non-life business. As Income remains dear to all Singaporeans as a local homegrown insurer, I hope that the above issues will be resolved soon and addressed for all stakeholders.

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In Indonesia, roughly half of who is considered insurance literate ended up buying the product, while leading insurance players’ current operations are concentrated in few major provinces. Those nuances are hard truth the market is facing and it calls for solution from every stakeholders so the growing population and economy of Indonesia could get the protection they and their family deserve. It was a pleasure to speak with Yashish Dahiya, Co-Founder of Policy Bazaar & Group CEO at PB Fintech, and Roopa Malhotra, Head of Customer & Digital, Asia Pacific at Zurich Insurance and discuss how various stakeholders can work together to close protection gap in our region through multi-faceted approach that involves education, government support, industry innovation and consumer awareness. You can watch the full episode below… #insurance #protectiongap #innovation #emergingrisks #insuranceawareness #ZurichInsurance #ZurichIndonesia #ZurichTopasLife #createabrighterfuturetogether

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The general insurance market in Singapore is expected to grow significantly, reaching $8.1 billion in gross written premiums (GWP) by 2029. This represents a compound annual growth rate (CAGR) of 6.2% from $6.0 billion in 2024, according to research by GlobalData Plc. https://hubs.la/Q02-6MPk0

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In recent weeks, there has been fervent discussion on the acquisition of Income by Allianz, of which was rejected by the Government of Singapore. https://lnkd.in/gzkVVv6b Allianz has proposed to acquire Income for a 51% stake which it values at S$2.1B. Allianz has proposed that Income return S$1.85B to its shareholders in the next 3 years. From an investor's perspective, there is nothing wrong with a proposal from a shareholder to return cash to its shareholders, especially when there are limited opportunities to compound the cash in Income at a rate of return beyond its opportunity cost, subject to the approval of its board of directors. The issue ultimately lies on whether the interest of minority stakeholders ost acquisition may be compromised given the social values that Income stands for.

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In early April, the AI Summit in Singapore brought together more than 50 actuaries from 17 countries to discuss AI's transformative impact on the actuarial profession. 🤖 Sponsored by the International Actuarial Association (IAA), the event highlighted how AI is creating new roles and solutions for actuaries. Explore key takeaways from the summit in a new article by Jing Lang, FCIA, to learn how the IAA's AI Task Force is gearing up the profession for the future. And, with interviews featuring AI Task Force members and FCIAs Tim Bishop and Bernice Lim, discover the future implications of AI on the industry. 💡 Matt Bartley, FSA, FCIA #ActuarialExcellence #AI #ArtificialIntelligence #ProfessionalDevelopment #AIforActuaries

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The Monetary Authority of Singapore (MAS) increased its scrutiny on reinsurance contracts held by insurers in Singapore.  This move follows a report by the International Association of Insurance Supervisors (IAIS) highlighting risks associated with the insurance industry’s growing allocation of capital to alternative assets and the rising use of cross-border asset-intensive reinsurance.  MAS has requested insurers to submit the terms and conditions of their reinsurance agreements for review and has indicated that these contracts may be subject to audits.  This closer monitoring aims to address potential financial stability risks, such as liquidity, valuation, hidden leverage, and credit risks. Reinsurance contracts are agreements where an insurance company, the ceding company, transfers part of its risk portfolio to another insurance company, the reinsurer.  This process helps the ceding company manage its risk exposure and maintain financial stability by sharing potential losses with the reinsurer.  By transferring risk, insurers protect themselves from large claims that could impact their financial health.  Reinsurance allows insurers to free up capital, enabling them to underwrite more policies.  It provides stability to the insurance market by spreading risk across multiple entities.  There are two types of such contracts. In proportional reinsurance, the reinsurer receives a fixed percentage of premiums and pays the same percentage of claims.  In non-proportional reinsurance, the reinsurer only pays when claims exceed a certain amount, known as the retention or deductible. Terence Nunis Terence K. J. Nunis, Consultant Chief Executive Officer, Equinox GEMTZ

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Great opening session at the 20th SIRC (Singapore International Reinsurance Conference) this afternoon. Great to hear insight from our Swiss Re Group CEO Andreas Berger on the protection gap, the importance of data, AI and natural disasters, and many other topics affecting the industry, great hosting by Jane Cheng of NMG. Looking forward to catching up with friends, colleagues and partners over the next few days and to having some enlightening discussions. #insurance #reinsurance #riskmanagement #swissre #climate

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❗ 📉 QBE Asia's recent survey reveals that the proportion of Singaporean SME executives fully informed of possible cyber risks has fallen significantly from 57% last year to 47% this year. 😥 The proportion of SMEs without any processes or protection against cyber risks also rose dramatically, from 9% last year to 19% this year. Mr. Shun Quan Goh (SQ), Head,Underwriting, Retail & SME, QBE Singapore, said, "This number shows how vulnerable SMEs may be to cyber risks, and underscores the need for companies to educate, upskill, and protect themselves in this area.” 📰 Download the news release for more information: https://lnkd.in/g4zQuYkZ #SME #CyberLandscape #Singapore #RiskManagement #Cybersecurity #CyberAwareness

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What are the top three themes underpinning the challenges for general insurers? Interconnectedness, customer treatment and climate. This was the consensus of an expert panel hosted by the Actuaries Institute in its recent GI Market Update Insights Session. As part of the panel, Director Andrew Song gave his perspective on recent and upcoming regulation changes for the industry. He and co-presenters Susie Amos, David Mee and Mathew Ayoub explored other areas, such as inflation, technology and global issues. As the panel shared their experiences, they highlighted how the three big themes have implications not only for general insurance but across corporate Australia. #Actuaries #Insights #GIMarketUpdate

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In today’s digital age, it’s tempting to think that cutting out general insurance intermediaries (GIIs) is the way to go. But, hold on to your policy documents, folks! We’re about to make the case for why supercharging GIIs is the way forward. [This article was generated by Meta AI and has been edited by the Surer team for clarity, readability and context.] #generalinsurance #surersg #surer #insurancebrokers #insuranceagent #insuranceindustry #insurancesolution #insurtech #AI

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Great to see Global Asia Insurance Partnership and Insurance Development Forum come together to organize a summit on this very important topic: "Addressing Asia's Protection Gaps". #insurance #resilience #asia

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The insurance industry recognizes climate risk as a ‘known unknown’, but is still learning how to manage the challenge. BCG’s Steven Chen recently spoke to Asia Insurance Review about what actuaries can do to create a more sustainable future for the insurance industry, sharing his perspectives on the rigorous approach needed to maximize insights and reduce unnecessary complexity when addressing climate risk, as well as how AI and Gen AI could help navigate uncertainty. He also elaborated on the importance of partnerships in supporting innovative solutions, and highlighted the various ways in which actuaries can do their part to promote ESG. Read the interview here: https://on.bcg.com/3y94tKu #BCGinSouthEastAsia #Insurance #ClimateAndSustainability

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To celebrate #AANHPI Month, #TheActuary released a new article focusing on the positive impact Asian actuaries make to the actuarial profession, the ever-growing representation of them in the workplace, the difficulties of the bamboo ceiling and more. Read the article at https://bit.ly/3wuKEwK.

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