By A. Stephanie
Maybank’s insurance and takaful arms under the Etiqa brand will reach Indonesian and Filipino shores by next year, its group insurance head said today.
This was following the successful foray of Maybank Ageas Holdings Bhd – the parent company of Etiqa Insurance Bhd (EIB) and Etiqa Takaful Bhd (ETB) – into Singaporean’s life insurance market last August.
Etiqa Insurance Pte Ltd was established in the Lion City, taking over from EIB which previously offered only general insurance products through agents.
“For the five-month period from August to December last year, gross written premiums for Singapore’s life insurance business has already reached RM61.3 million, whilst general business grew a record 25% to RM137.7 million,” group Etiqa boss and Maybank Ageas CEO Kamaludin Ahmad said today.
Kamaludin Ahmad
The Etiqa boss said in line with its regionalisation plans, the group is in talks to acquire smaller insurance companies in Indonesia and the Philippines in order to grow its Asean presence whilst leveraging on the footprints of its sister bank Maybank in these countries.
“Maybank already has a significant presence in Indonesia with 200 branches, followed by the Philippines at around 80 outlets. So these are the natural countries for us to go to,” Kamaludin remarked.
He said: “Mergers are unlikely, because of the licenses situation. We may have to acquire companies especially in Indonesia, as applying for a new insurance license is very difficult – and we foresee a similar situation in the Philippines,” adding that these expansions will happen latest by next year.
Asked what sort of companies Etiqa is looking to acquire, Kamaludin said: “Looking at Indonesia’s market situation, we are looking at (paying) three to five times book value.
“But our difference is we are going in with the distribution network of Maybank, unlike other companies who would go in while relying on local partners. So based on that, we would be able to get a lower valuation,” he said.
Calling the Singapore expansion one of Etiqa’s highlights for 2014, he noted that prior to 2000, the general business was unprofitable but there has now been a turnaround to become very profitable.
Etiqa Insurance and Takaful had appointed Sue Chi Kong as CEO of its Singapore-based insurance unit, Etiqa Insurance Pte Ltd, as of July this year.
Kamaludin said: “Last August, we started delving into life insurance business there, and what strides we’ve made have been phenomenal in the last five months of 2014 because Etiqa is not a household name in Singapore.
“In December alone, we generated new Singapore business of regular premiums worth RM22 million, and we are targeting similar growth going forward, maintaining RM10-12 million monthly life business in 2015,” he enthused.
The Etiqa brand under Maybank Ageas is 69.05% owned by Etiqa International Holdings Sdn Bhd, in turn a wholly-owned subsidiary of the Maybank Group. The remainder 30.95% stake is held by Belgium and Netherlands-based Ageas Insurance International.
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