Calvin, I just did a check on the "loans and receivables" which are actually fixed deposits placed with various banks. Under new financial reporting standards fixed deposits are now grouped under "loans and receivables".
PNB and bumiputra foundation, both PNB ler..holds 55.1%, way over simple majority. so why cant they just remove the top management of this company? perhaps you could elaborate on that. yes, they keep on selling..but only peanuts compare to the total share that still available, if they really serious to dispose their stake. stupid to do it dy by day..untill tua baru finished...huhu
just answar my question, why the majority shareholder, >51%, decided to do the sell bit by bit of their share, rather than throw out the bad management?? if that is really the case. what hold them back?
Last time I warned wahahaha in Tekseng to sell it above Rm1.00 but he kept opposing me. Today Tekseng crashed by 72% to only 28 sen & wahahaha disappeared.
I don't own MNRB. I think some of the points in the article are not entirely correct. Just to share what I observed in their accounts:
1. Gross premium should be 2.5b, not 1.3b. It is not clear what caused the drop in the last quarter. A drop in revenue is usually not a good thing unless they stop writing some loss making business. To be fair, their claim also came down during the quarter.
2. High management expense - we can't tell whether MNRB has high or low expenses unless you compare that with their product loadings and other life/general companies to form a better view. Insurance companies incur high marketing costs on branding and incentives to the sales people (in addition to commission). Major insurance companies usually have a branch in almost every state to serve their policyholders. Syarikat Takaful incurred RM260m (they put some under "other operating expenses") for the first 6 months, it will be more RM500m a year. For some life insurance businesses, part of management expenses can be charged to policyholders' fund.
3. High receivables - I believe part of these is outstanding premiums which is backed by policyholders' policy values, there is little risk here. The other is outstanding claim recovery from reinsurance companies, usually backed back strong international reinsurance companies. These are the reasons why they are not impaired else their auditor EY surely won't let go such a big amount.
5. On right issue - obviously they don't have enough money! My understanding is that insurance is a capital intensive business. They don't have inventory but Bank Negara requires them to put aside huge fund to support the risks they are taking to ensure policyholders are protected. I read that MNRB set up a new company recently. This triggers additional paid up capital and their RM320m debt (not sure whether this is subordinated debts) is maturing this year. What is not clear to me is why are they have a right issue instead of issuing subordinated debt.
The Receivables are actually fixed deposits placed with various banks. Insurance business you collect premium before coverage. Where got such thing owe premium? No premium no coverage.
mr calvin, could it be true that they sell to appear to YOU are red flag. But what about they subscribe the right at only RM 0.9, does that appear to you they are Long Term investor? isn't it a strategy of SELL high BUY low??!!
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joetay
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Posted by joetay > 2018-07-23 22:17 | Report Abuse
u stated that mnrb is in financial troubles, that is a very serious allegation, u know????
lol.........