TAHAN Insurance Malaysia Berhad, which will go full force in re-branding
its insurance products after completing the merger with its two insurance
partners, expects revenue from insurance premium to grow 20% to 50% this
year.
According to its deputy chief executive officer Razidan Ghazalli, the
company has spent a lot of time in the past two to three months formulating
its business strategies.
"We would put in a substantial amount in marketing our image and
products to promote visibility in the market," he said.
Razidan told StarBiz in Kuala Lumpur yesterday after signing an agreement
to participate in Malaysian Red Crescent Society's (MRCS) Partners in
Humanity Program.
"The partnership with MRCS represents a two-pronged strategy for
Tahan. It would give Tahan a commitment to become a good corporate citizen
and a new avenue to promote and expand the range of our insurance products,"
Razidan explained.
Under the agreement with MRCS, Tahan will send its management personnel
and staff, including members of its Rescue 33 roadside assistance team
and insurance agents, for training in first aid.
Tahan will also promote the sale of MRCS first aid kits to policyholders
and support a nationwide blood donation by providing promotional materials.
In addition, all Tahan poliocyholders will be given MRCS membership upon
renewal of their policies.
Razidan said the company would strengthen its core processes such as
to accelerate its claims processes, build a strong distribution channel
nationwide and reinforce its agency force.
"Currently we have 18 branches nationwide. We will use this infrastructure
to create a strong channel for our business. We will maintain these 18
branches after the merger to avoid duplication," he said.
To date, Tahan has 3,500 agents for both life and general insurance.
Razidan said he expected its agency force to increase 25% to 4,375 agents
this year.
On its merger exercise, he said: "We have completed our merger with
The People Insurance Co (M) Bhd and has sealed the deal with Tenaga Insurance
Bhd. We are awaiting the green light from Bank Negara to go ahead with
the merger with Tenaga Insurance."
Razidan said the total acquisition costs of Tenaga Insurance and People's
Insurance were less than RM 200mil.
"Barring any unforeseen circumstances, we expect to complete the
merger with Tenaga Insurance this quarter," he said.
Razidan said that the company's appeal to Bank Negara to allow acquisition
of Malaysia & Nippon Insurans Bhd was still pending.
Tahan's parent company Idris Hydraulic (M) Bhd and Koperasi Tentera,
the largest shareholder of Malaysia & Nippon, met with Bank Negara
officials in November last year to appeal against the Bank Negara decision
to reject the merger proposal.
Razidan said Tahan was not too concern if Bank Negara did not approve
the merger proposal.
"It would not affect our takaful business. We are a composite license
insurance company, meaning we can sell both life and general insurance
products. Not many insurance companies have that license," he said.
Under the Bank Negara insurance industry consolidation programme, an
anchor insurance company needs to acquire three insurance companies to
be entitled to a takaful license.
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