By A. Stephanie
The costs of both downed Malaysia Airlines planes – MH17 and MH370 – were paid to the airline within two weeks of each incident, according to its insurer Etiqa.
The brand, a 69% subsidiary of Maybank, wrote the risk on both craft and attributed the quick claims payment to the strong reinsurance framework it employs.
“In 2014, we saw the twin tragedies of MH17 and MH370, which Etiqa wrote the risk, and we paid the claims on both planes within two weeks. This shows the strength of the crew as well as our reinsurance framework,” group Etiqa boss and Maybank Ageas Holdings Bhd CEO Kamaludin Ahmad said today.
Maybank Ageas is the parent company of both Etiqa Insurance Bhd and Etiqa Takaful Bhd, and the largest insurer of large and specialised risk (LSR) business in the country.
Kamaludin Ahmad
Kamaludin said: “In cases like these, we ensure that when we write the risk, we keep a little bit of the risk and make sure all our reinsurers are qualified so there won’t be any issue in terms of claim payments. Within two weeks from the incidents, we paid Malaysia Airlines the cost of both aircraft with the backing of all our reinsurers.”
The group also paid out RM57 million in claims via its fast track claims process last year, whilst Etiqa Takaful built 64 new houses for flood victims in Kota Bharu, Kelantan, the group CEO noted.
He was speaking to reporters after announcing the group’s financial results for 2014 earlier today.
Etiqa recorded profit before tax of RM767 million for last year. This came on the back of total combined gross written premiums of RM5.02 billion from both conventional and takaful insurance arms, up 5% from RM4.78 billion in 2013.
The group is targeting combined premiums of RM5.6 billion this year, and this 11% growth will continue to be buffeted by 10-12% growth in both general insurance and general takaful businesses.
Etiqa’s overall general business grew RM2.55 billion from 2013, making the brand the largest general insurer in Malaysia with a 12.8% market share.
Kamaludin said: “For the general business, we have been missing out on insuring foreign companies coming into Malaysia. In some cases, these are just not as accessible because of existing agreements with their long-term insurers overseas.
“So we are just going to be a lot more aggressive this year with foreign companies, and already have a long list of target accounts.
“We are the largest player when it comes to LSR business in Malaysia, with LSR dominating our general business portfolio at 60%. In fact, we are the biggest risk writer for the oil and gas industry, in addition to involvement in the aviation and marine sectors,” he noted.
Meanwhile, on Etiqa’s life and family insurance business, the group expects renewal of new Singaporean business as well as increased takaful take-up in Malaysia to be the main growth drivers of 2015.
Kamaludin said the successful Singapore life insurance expansion brought in RM61.3 million from just five months’ new business.
“For 2015, factoring in a full year’s worth of new business as well as the renewal of last year’s business, we expect to bring in RM200 million.”
“In Malaysia, we are trying to focus on selling more on the takaful business via the bancassurance channel. That’s picking up now, on some good days, we see about RM500,000 coming in daily,” he said.
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