Posted by observatory > 1 month ago | Report Abuse

The business could be supported by the newly set up shared IT services in Malaysia. But any possible synergy with Allianz Malaysia?

Posted by wsb_investor > 1 month ago | Report Abuse

Allianz already has some existing shared service in Malaysia, but in a very weird arrangement.

Posted by observatory > 1 month ago | Report Abuse

What do you mean?

Posted by wsb_investor > 1 month ago | Report Abuse

If my understanding is correct, Allianz will loan out its internal staff (under a single entity), as shared service to other BUs, and get to profit from it. A more common way is, shared service will operate as a separated entity (might or might not under local BU, typically not under local BU, but directly under Group).

Posted by observatory > 1 month ago | Report Abuse

I see. Maybe for non-IT staffs. For IT they transferred the majority of Malaysian staffs to the new regional delivery center Allianz Technology Sdn Bhd

Posted by mesoan > 1 month ago | Report Abuse

but shared service is very small business, unlikely to improve Allianz mas earning

Posted by observatory > 3 weeks ago | Report Abuse

Only after reading yesterday news that I realize Prudential parent company owns just 51% * 50.99% = 26% of Prudential Assurance Malaysia Bhd.
If Prudential can’t obtain greater control as per Federal Court’s decision, wouldn’t it discourage Prudential from growing its Malaysian market?
How would Prudential agents react?

Posted by wsb_investor > 3 weeks ago | Report Abuse

No，Pru plc owns 51% of PAMB. If bumi proxy can just anyhow songlap foreigner share, I think discourage Prudential from growing MY market is the least concern.

Before 1998, Pru plc owned 30% of PAMB, Berjaya owned ~69%. In 1998, Berjaya divested in PAMB, and supposedly sold all ownership back to Pru plc. However due to insurance act 1996, Pru plc cannot, on paper, own 100%, hence the Detik Ria (30% @ 1998) as bumi proxy. Vincent Tan personally also hold 19% of PAMB share at this point, only later (unknown when), sold the 19% to Detik Ria. Pru plc has signed some put and call options on the ownership of Detik Ria (i.e. fixed price) that it will repurchase back the ownership at later time.

Later in ~2017, BNM (or government) started to want to enforce the foreign ownership (now 70%), Pru plc then planned to get back the 49% and then disinvest accordingly. This Tommy, used the excuse that not getting MoF approval, but ignoring that BNM has given the approval. Next time how? listen to who? MoF or BNM?

Who is enforcing the 70%? BNM. From the article, BNM also ok with Pru plc approach, to get back 100% of share, and proceed with disinvestment accordingly. Then suddenly, VT and Tommy, come out with this idea, to songlap Pru plc ownership.

Posted by wsb_investor > 3 weeks ago | Report Abuse

Prudential is not the only company that foreign owns 100% via bumi proxy. GE has gotten exemption. AIA has approval from white house, probably no one dare to touch. HLA and Etiqa are local. Allianz/Manulife are listed. Sunlife/MCIS/Generali/FWD/AmMetlife all have local partner. Zurich and Tokio Marine probably still 100% foreigner own, with proxy.

Posted by observatory > 3 weeks ago | Report Abuse

The Federal Court ruling cannot be further appealed. Wonder what can Prudential do. Negotiate and pay?