Posted by Voon Soon Yoong > 2012-08-31 20:19 | Report Abuse

gark> thx man~ im newbie here.. still learning.. haha

Posted by simon68 > 2012-08-31 22:43 | Report Abuse

any idea how they will settle the 270 M loan that matures in dec, will right issue be a likely option

Posted by simon68 > 2012-08-31 22:50 | Report Abuse

anyone can clarify on the 20% mandatory reinsurance bussiness that must be given to MNRB, is there a review onthe policy

Posted by gark > 2012-09-01 10:01 | Report Abuse

For the loan maturing in Dec, they will probably roll it into another MTN. With their asset they will have no problem doing so and do not need any capital raising.

The 20% mandatory re-insurance business does not really matter now to MNRB, because it total share of Malaysia Re-insurance business is currently at 61%. Followed by Munich RE & Swiss RE next at 13% & 10% respectively.

Posted by gark > 2012-09-01 10:04 | Report Abuse

MNRB's financial strength is rated 'A' by Fitch Ratings, so it it classified under investment grade. Capital raising via MTN or LTB will be easy and at low interest rate.

Posted by gark > 2012-09-01 10:24 | Report Abuse

Leslie, yes you are right. No one knows if there will be any future disasters that might require a large insurance payout. The future liabilities might or might not happen. The un-expected Thai flooding took large chunk of profits from most re-insurance companies, and MNRB made a large provision to future liability.

Posted by KC Loh > 2012-09-01 10:27 | Report Abuse

I have always like your postings gark.

You seem also very familiar with the insurance industry!

Posted by gark > 2012-09-01 10:56 | Report Abuse

Glad you like it KC Loh, I am merely stating the facts. No I am not familiar with the insurance industry, but I make a point to study each counter I hold thoroughly. You gotta understand what you are buying right?

Posted by simon68 > 2012-09-01 12:29 | Report Abuse

thank you very much gark, im new here and first time coming across your posting, it is very factfull and appreciate your sharing with us,whats the meaning on MNRB comments on A4 of this quarters result, " entered into loss portfolio transfer arranmgement with a reinsurer, as a result , claim liabilities of RM76.6 million were transferred to the reinsurer" , will it have impact on the future profit?? many thanks

Posted by simon68 > 2012-09-01 12:33 | Report Abuse

gark, if bangkok flood again this year, will the same amount of provision required or the reinsurer will clause it in as exception as bangkok flooding can be a recurrent event, thanks

Posted by gark > 2012-09-01 12:58 | Report Abuse

Re-insurers also commonly cede a portion of insurance to other re-re-insurer. This is done to lower the risk profile of holdings.

The statement means that portion of claim liability is ceded to another re-re-insurer. There will be no immediate impact on the profit, as it merely lower the future claims liabilities.

The insurance premium on Bangkok has shot to very high after the incident as lot of insurance company do not want cover the area. However saying that, Berkshire-Re is currently active in mopping up business there.

If there is a flood again, then provision for loss have to be made again and likely will suffer losses for the quarter. The amount of provision depend on severity.

Basically any natural disaster is a big liability for insurance and re-insurance with business in the disaster area. That is why those with the best financial strength will win in the long run.

Posted by KC Loh > 2012-09-01 13:08 | Report Abuse

Yes you are right gark. If one doesn't know the business model, forget about the counter! That's what we say!

Problem with reinsurance business is always balancing the investment and cash. their investment is usually into low yield but secure MGS, there must always be a cash portion ready against claims! One must always remember that investment cycle is slow process. Hence all reinsurance business looks good in financial ratios but things can turn around very quickly as Buffet experienced when Hurricane Katrina came!

Posted by simon68 > 2012-09-01 13:45 | Report Abuse

thanks gark, as mentioned by kc loh, the fiancial ratios is defienately look good, considering the risk on the natural disaster, and the need for those with fiancial strength to take such risk, will there be any takers for mnrb under the khazanah planned divestment, it cant be done by any special individual bumiputeras?

any rationale for PNB's limited selling in the market lately with such good yield and fiancial ratios, thanks

Posted by gark > 2012-09-01 13:50 | Report Abuse

Hurricane Katrina is a costly event... but pity the insurance companies that is affected by the recent Japan Tsunami.. which will cost up to USD 25 billion. The biggest affected insurance companies are Tokio Marine, Munich Re & Swiss Re.

That said IF tomorrow KL get destroyed by earthquake, flood, tsunami etc.. we can say goodbye to MNRB. ;)

Posted by gark > 2012-09-01 13:57 | Report Abuse

MNRB has tried to sell off the family takaful to Allianze Insurance previously, but talks we halted as they cannot agree on the price.

MNRB is a very illiquid counter with ~70% shared held by PNB, ASB, ASM, ASW2020, ASN. I am not concerned on small disposals by ASM.. :P

Posted by limpek4896 > 2012-09-03 11:41 | Report Abuse

trad high start with rm 3.07.keep up until ex dividen

Posted by datuk > 2012-09-03 11:53 | Report Abuse

wah....ho ser liao..limpek...kikikiki

Posted by lewistee > 2012-09-03 12:07 | Report Abuse

what is the TP for this counter?

Posted by limpek4896 > 2012-09-03 12:18 | Report Abuse

my target is rm 4.00

Posted by limpek4896 > 2012-09-03 12:21 | Report Abuse

hi friend,u wrong channel

Posted by limpek4896 > 2012-09-03 12:31 | Report Abuse

hahah,datuk,last friday i ask ppl to buy for last call,duno got kawan ikut tak,actually now i have more then 250k share in mnrb.until rm 4.00.hahahahahaha.limpek kaya lol

Posted by datuk > 2012-09-03 12:33 | Report Abuse

Limpek....i'm happier also when see u in the process of making good money....ho ser lor.......

Posted by limpek4896 > 2012-09-03 12:36 | Report Abuse

oklor,we come here all coz make money mah,is cannot make money from bursa not lesson for me keep waste my times,

Posted by limpek4896 > 2012-09-03 12:38 | Report Abuse

datuk make 8 digit here,me 7 digit every year kau liew,hehehehe

Posted by datuk > 2012-09-03 12:42 | Report Abuse

I can't matching you limpek....i made 8 digit over the last 2 decades..acorss 3 bull cycles......but u aimed to make 7 digit on very year.....i think yours size are absorb pipelah.....kikikik, wahaha wahaha!!!

Posted by limpek4896 > 2012-09-03 12:49 | Report Abuse

hahahahaha,pray for me,this is my hope for 7 digit

Posted by datuk > 2012-09-03 13:00 | Report Abuse

dreamed big, aimed big, acted big and of course absord pipe also big....haji ...u will realise yr 7 digit hope...kikikiki

Posted by limpek4896 > 2012-09-03 15:44 | Report Abuse

hahaha,mnrb,hopefully will closed at rm 3.20

Posted by limpek4896 > 2012-09-03 15:45 | Report Abuse

datuk,gua tengok jauh mah,hehehe

Posted by transformer123 > 2012-09-03 16:51 | Report Abuse

Lim pei....
Can buy utopia for short term....

Posted by limpek4896 > 2012-09-03 16:55 | Report Abuse

transformer,sorry.no commant.

Posted by limpek4896 > 2012-09-03 16:57 | Report Abuse

today vol is q big,is rm 0.12.not any profit for u

Posted by KC Loh > 2012-09-03 17:02 | Report Abuse

Careful ar haji, alex Lu said this management may be taking too much risk to improve its bottom line. Suggest you cabut before RM 4!

http://klse.i3investor.com/blogs/nexttrade/17007.jsp

Posted by limpek4896 > 2012-09-03 17:27 | Report Abuse

MNRB (closed at RM3.08 in the morning session) is now trading at a PE of 6.5 times (based on last 4 quarters' EPS of 46.9 sen). Its Price to Book is at 0.58 time while its dividend yield is at 5.5%.

Based on any of the above, MNRB's valuation is deemed undemanding.

Posted by limpek4896 > 2012-09-03 17:30 | Report Abuse

thks kcloh,anyway,i am fully comfident with my new target price,alexlu also say this counter is deemed undemanding

Posted by gark > 2012-09-03 17:32 | Report Abuse

As long as no big disaster.. then this stock safe. :)

If got natural disaster then die... basically we are gambling with nature. :)

Posted by KC Loh > 2012-09-03 17:36 | Report Abuse

OK Haji, all the best if you have already done your homework. I am just worried we are getting in the monsoon period now! Don't want govt come and then say pay flood disaster in northern states, then MNRB kena exposed

Posted by limpek4896 > 2012-09-03 17:39 | Report Abuse

yes,is 3 year thailand no flood,hahahaha.i happy until duno how to say

Posted by limpek4896 > 2012-09-03 17:41 | Report Abuse

so just pray monsoon don come,hehehehehehehe

Posted by limpek4896 > 2012-09-03 17:44 | Report Abuse

gark,u right,we gambling with nature.without this,mnrb is 100%perfect counter

Posted by gark > 2012-09-03 18:14 | Report Abuse

Nah another big flood can't take down MNFRB.. need something serious like earthquake/typhoon/tsunami/tornado happen in KL first. :P

Lucky now I am not in KL....

Posted by limpek4896 > 2012-09-03 18:22 | Report Abuse

tornado/earthquake/typhoon will not happen at thailand or malaysia this few year,without monsoon or tsunami.

Posted by limpek4896 > 2012-09-03 20:24 | Report Abuse

tomorrow rm 3.20.hehe

Posted by transformer123 > 2012-09-03 20:41 | Report Abuse

Limpek.
I have RM100k , what would you recommend to buy within 6 months

Posted by EmoTrader > 2012-09-03 20:42 | Report Abuse

Congratulation to who earn fr this!!

Posted by limpek4896 > 2012-09-03 20:55 | Report Abuse

wow.kaya oh,but no idea yet

Posted by transformer123 > 2012-09-03 20:57 | Report Abuse

Serious , me really give this as my last chance in stock market...
Me lost lts...almost RM250k...

Posted by EmoTrader > 2012-09-03 21:17 | Report Abuse

transformer123: u shld ask pro trader to gv u some tips.they are always rite, mybe low risk...

Posted by Voon Soon Yoong > 2012-09-03 21:20 | Report Abuse

Keep in FD and wait until bear market reach its bottom then buy a rapid growing undervalued stock, double ur money within 1 year.. Easier said than done haha..

Posted by mcd123 > 2012-09-04 09:17 | Report Abuse

Steady..steady...time to lock in some gain..Limpek...money follow me back home.heheehhee.(happy)