Posted by joetay > 2018-07-25 17:35 |

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Posted by joetay > 2018-07-25 19:54 |

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Posted by joetay > 2018-07-25 23:53 |

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Posted by SuperInvestor9 > 2018-08-25 13:48 | Report Abuse

mnrb is a shit stock, don't waste time on this useless counter.

Posted by joetay7 > 2018-08-25 14:15 |

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Posted by joetay7 > 2018-08-25 20:52 |

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Posted by EngineeringProfit > 2018-08-25 23:09 | Report Abuse

Had sold early this year when it went up 2.70+

Posted by Jarklp > 2018-08-25 23:19 | Report Abuse

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.

Buying at your own risk... Good luck..

Posted by lching > 2018-09-20 23:12 | Report Abuse

good points Jarklp, thanks.

Posted by TheContrarian > 2018-09-21 00:06 | Report Abuse

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.

Posted by Kean Leong Wong > 2018-10-04 11:23 | Report Abuse

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??!!