With the completed transfer of the Life Insurance business to Axa Affin
in 30 June 2006, and the receipt of proceeds from the purchasers thereon,
the shortfall in the general business margin of solvency (MOS) as of December
31, 3005 has been reduced to approximately RM54,211,000. This position
was further improved by the off-loading of the non-admitted corporate
bonds. The result of which is Tahan Insurance has fully regained its solvency
position.
As at 31 August 2006, the solvency deficit of the Company has reduced
to only RM6 million (before the complete disposal of the non-admitted
corporate bonds). In September 2006, Tahan Insurance has managed to off-load
the remaining non-admitted corporate bonds (SPV17) and raised RM24 million
which has effectively rendered the Company's solvent.
Now that the solvency issue has been addressed and resolved, Tahan Insurance
is gearing to venture into broking arrangements again and participate
in insurance tenders for larger corporate accounts, large and specialized
risks and public listed companies. Prior to solving the long outstanding
solvency position, the Company has spent the last one year, nurturing
and developing future prospects and strategies for business growth. Several
synergistic alliances has been developed and established with corporate
clients, offering value added products and services. Such alliances are
also expected to boost the Company's performance particularly in the year
2007.
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