Posted by calvintaneng > 2018-10-28 09:05 | Report Abuse

Good morning CharlesT

Yes. I posted much earlier that if Mnrb should fall to Rm2.50 I might consider buying

However, that was then. Times have thrown up further changes. Now that even 5% remaining dividend was scrapped (used to be 10%) and the new cash call was the final straw why I totally changed my mind about Mnrb

All Govt Cash Cow companies starting with 1mdb have been plundered

1.Mara Management siphoned out monies by buying inflated assets in Australia

2. In Australia I met an oversea Chinese Malaysia who warned me about FGV (Fraud Governed Victim) and he was correct

3. MNRB turned from 10% dividend payout to 5% dividend payout and then stopped payment of dividend and finally asking for monies. And then the relentless selling by ASB.
In Warren Buffet group of insurance companies especially Geico they did better and better all these whiles without Govt support unlike Mnrb

THE risk and reward in MNRB shows more uncertainty and risk more than reward at this juncture. This is my conclusion

Posted by Jon Choivo > 2018-10-28 09:16 | Report Abuse

The management expenses is not the problem, its roughly in line considering the revenue.

The problem, is i think in the management not being competent. Reinsurance is a global business. MNRB does reinsurance for risks in china etc.

Their average cost of float for the last 10 years is 6.5%. If you take out the big losses, its about 3.5%.

But the nature of the insurance business is, you should have predicted and priced correctly the big losses to begin.

I'm still studying it, but it does not look that good to begin with. I'm not that comfortable with it.

Insurance companies, if possible, need a strong private owner, who will look and price is the risk correctly since its their own company.

This is clearly not the case for MNRB which is essentially a state owned company.

Posted by Nicholasming91 > 2018-10-28 09:29 | Report Abuse

Any counters that have involvement with previous government sure have loopholes in it. Depends on how big it is. U can see from Datasonic and MyEg involvement, easy for leaders to abuse their power in exchange for money .

But I believe previous leaders totally not interested in insurance companies due to their nature of complexity and policies, no fast money for them to gain la.

U cannot compare to other countries company, because malaysia definitely need government support at the first place, Depending on ur business .

Posted by Tomchan > 2018-10-28 09:38 | Report Abuse

Calvin, do u know that insurance industries are closely monitored by bnm. I understand from ex-manager from a insurance company that the penalty from false claims by staff is high. So your argument that it is easy to manipulate insurance companies' expenses is a doubt on bnm's supervisory activities. Mnrb's businesses are reinsurance and takaful. Reinsurance involves taking part, said 2% to 10%, of other insurance companies' insurance portfolios. It is this feature of insurance business that reinsurance is more diversified in insurance risks than any insurance company in Malaysia. As long as the entire insurance industry in malaysia is profitable, mnrb will definitely be making profit. To simply infer 1mdb to all glc is an insults to msians

Posted by Tomchan > 2018-10-28 09:39 | Report Abuse

Insult

Posted by Nicholasming91 > 2018-10-28 09:46 | Report Abuse

Thats what i thought too, what is he even talking. Insurance is one of the most complicated process that gives u plenty of headaches to claim, if u did do insurance . Takaful gained this QR, pretty good

Posted by CharlesT > 2018-10-28 09:47 | Report Abuse

Hv to study takaful's case...starting fm 2012 to now...dunno what is the turning point..

Posted by Jon Choivo > 2018-10-28 09:50 | Report Abuse

It under BIMB. Alot of cross selling. Takaful is also one of the most leveraged insurance assets wise.

Growth in life etc is mainly due to them having a stronger foothold in the malay market, where the majority does not have insurance.


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Posted by CharlesT > Oct 28, 2018 09:47 AM | Report Abuse

Hv to study takaful's case...starting fm 2012 to now...dunno what is the turning point..

Posted by CharlesT > 2018-10-28 09:53 | Report Abuse

Calvin so u presume mnrb's rights issue proceed will still go to 1mbd so that ah jib can use the money to buy sabun in sg buluh later?

Takaful is also a state owned co...their money also kena stolen by 1mdb too?

Maybank, cimb, tenaga etc etc also stated own co...what shall i do now? Sell all?

Posted by CharlesT > 2018-10-28 09:55 | Report Abuse

Life insurance is the most profitable one...recurring free cash flow every year...WB's favourite

Posted by Nicholasming91 > 2018-10-28 09:55 | Report Abuse

Ya he wants u to sell all so he can collect low kikiki..

Posted by CharlesT > 2018-10-28 09:56 | Report Abuse

General insurance not so profitable

Posted by CharlesT > 2018-10-28 09:58 | Report Abuse

My main interest in mnrn now is mainly on the rights issue n recent drastic price drop since july....not greedy only aim for 50% return in 6m to 12m..lol

Posted by Jon Choivo > 2018-10-28 10:00 | Report Abuse

Say that to LPI, they make 15% on float for general insurance.

Life insurance is one of the worst ones, because competition is so tight. Everyone losses money on the insurance premiums and makes it back via the investment income.

WB favorite is reinsurance. And GEICO, a car insurance which has un beatable const structure and scale. An incredible moat.

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Posted by CharlesT > Oct 28, 2018 09:56 AM | Report Abuse

General insurance not so profitable


Posted by CharlesT > Oct 28, 2018 09:55 AM | Report Abuse

Life insurance is the most profitable one...recurring free cash flow every year...WB's favourite

Posted by CharlesT > 2018-10-28 10:09 | Report Abuse

Life insurance is the worst one?? Anybody can clarify on that?? I doubt so...medical insurance yes lah

Posted by CharlesT > 2018-10-28 10:10 | Report Abuse

This is the first time i heard somebody claimed that life insurance is the worst insurance biz....interesring

Posted by CharlesT > 2018-10-28 10:11 | Report Abuse

Let me dig out more n come back later

Posted by CharlesT > 2018-10-28 10:13 | Report Abuse

What kind of competition? More people die at young age lately?

Posted by CharlesT > 2018-10-28 10:20 | Report Abuse

Basically insurance co used the premium (after deducting brokerage/ claims/ admin expenses) to invest so as to make money fm investment income....

Posted by Jon Choivo > 2018-10-28 10:40 | Report Abuse

Every insurer sells life insurance.

Thats the competition.



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Posted by CharlesT > Oct 28, 2018 10:13 AM | Report Abuse

What kind of competition? More people die at young age lately?

Posted by value_invest > 2018-10-28 11:54 | Report Abuse

Life insurance is more stable & low risk than general insurance. I think MNRB is the only Malaysia Reinsurace lisenced by BMN, if I m not wrong. Insurance industry in Malaysia is highly regulated, & stable business with constant dividend. I didn’t see any life insurance making bankrupt in Malaysia so far...

Posted by Jon Choivo > 2018-10-28 12:03 | Report Abuse

That is due to strong bnm regulation and tariff based pricing. This ensures there is not stupid competition.

Do not let these exogenous factors have you mistake insurance for a safe business.


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Posted by value_invest > Oct 28, 2018 11:54 AM | Report Abuse

Life insurance is more stable & low risk than general insurance. I think MNRB is the only Malaysia Reinsurace lisenced by BMN, if I m not wrong. Insurance industry in Malaysia is highly regulated, & stable business with constant dividend. I didn’t see any life insurance making bankrupt in Malaysia so far...

Posted by newbie4444 > 2018-10-28 20:38 | Report Abuse

Drop 50% in 2 mths. <90 sen this week?

Posted by Nicholasming91 > 2018-10-29 08:24 | Report Abuse

Er most of the stocks drop 50% after election

Posted by Bapaklangkau > 2018-10-29 08:26 | Report Abuse

https://klse.i3investor.com/blogs/bapaklangkau/179865.jsp
Likely to drop more after budget announcement!

Posted by Cipta > 2018-10-29 08:39 | Report Abuse

Nicholasming91: Er most of the stocks drop 50% after election

Er..did you mentioned LPI, Takaful, Manulife?

Posted by calvintaneng > 2018-10-29 12:09 |

Post removed.Why?

Posted by beso > 2018-10-29 12:38 | Report Abuse

downtrend restarts again， entering penny group， 1.00 has turned to very strong resistance
sure below 0.90

Posted by apolloang > 2018-10-29 12:39 | Report Abuse

if 90cts or below I sure buy

Posted by calvintaneng > 2018-10-29 12:40 | Report Abuse

Posted by apolloang > Oct 29, 2018 12:39 PM | Report Abuse

if 90cts or below I sure die

Posted by joetay > 2018-10-29 12:41 |

Post removed.Why?

Posted by apolloang > 2018-10-29 12:44 | Report Abuse

Posted by calvintaneng > Oct 29, 2018 12:40 PM | Report Abuse

Posted by apolloang > Oct 29, 2018 12:39 PM | Report Abuse

if 90cts or below I sure die

u sure die? u bought at how much? nevermind I support u.....hehe

Posted by joetay > 2018-10-29 12:44 | Report Abuse

with the general market sentiment, it will be worth to buy and keep.

but there is a 50% oversubscription in the ri, so will be very hard to sell down below 90.

Posted by apolloang > Oct 29, 2018 12:39 PM | Report Abuse

if 90cts or below I sure buy

Posted by apolloang > 2018-10-29 12:47 | Report Abuse

if no tak apa lah,i not hasty,many alternatives in bursa.everyday now keep monitoring and cheap stock to accumulate only....hehe

Posted by apolloang > 2018-10-29 12:48 | Report Abuse

I also wait sapnrg warrants below 10cts I buy......hehe

Posted by joetay > 2018-10-29 12:50 | Report Abuse

same here bro, there r a few penny stocks worth picking up at the rite price.

i m also waiting.

Posted by apolloang > Oct 29, 2018 12:47 PM | Report Abuse

if no tak apa lah,i not hasty,many alternatives in bursa.everyday now keep monitoring and cheap stock to accumulate only....hehe

Posted by TheContrarian > 2018-10-29 13:43 | Report Abuse

I thought Calvin bought MNRB @ RM2.50.

Posted by Cipta > 2018-10-29 14:15 | Report Abuse

bought RM2.50 not wrong given so many ppl here said this is a very very undervalue worthy invest stock...A good investor will cut loss and leave immediately if thing seem not right. Unlike some others, at least Calvin admit the uncontrol mistake and not allow further loss.

Posted by calvintaneng > 2018-10-29 14:19 | Report Abuse

Sell and runnnnnnn

Posted by calvintaneng > 2018-10-29 14:19 | Report Abuse

Going below 90 sen next

Posted by CharlesT > 2018-10-29 14:23 | Report Abuse

2mdb?

Posted by CharlesT > 2018-10-29 14:25 | Report Abuse

After Ahjib kena tangkap no more 1MDB...but could it be 2MDB in the making? Who will sapu the RM400M money raised from the rights issue?

Hope Calvin can elaborate more on his 2MDB story...I started to feel scare now

Posted by calvintaneng > 2018-10-29 14:25 | Report Abuse

1mdb
Mara
Fgv
Mnrb

Posted by CharlesT > 2018-10-29 14:30 | Report Abuse

MPCORP suspended at 0.04 now and could be delisted...despite u claimed they have huge landbanks in JOhor worths few RM per share...

DO u think their land also kena sapu by 1MDB too?

Posted by CharlesT > 2018-10-29 14:32 | Report Abuse

Calvin do u think MNRB will follow MPCORP's fate to drop till 0.04 and then suspended n delisted?

Posted by joetay > 2018-10-29 18:53 |

Post removed.Why?

Posted by Nicholasming91 > 2018-10-29 20:31 | Report Abuse

This calvin noone even like him anyway , might as well ignore him

Posted by Tomchan > 2018-10-29 20:42 | Report Abuse

Calvin wants to collect cheap shares bah. Hahaha

Posted by Tomchan > 2018-10-29 20:43 | Report Abuse

What a tactic. To fool

Posted by calvintaneng > 2018-10-29 21:06 | Report Abuse

All fools will cry father cry mother also no use when mnrb falls below 90 sen