Business

Friday September 4, 2009

HL Tokio Marine on track to meet premium target

By EUGENE MAHALINGAM


KUALA LUMPUR: Hong Leong Tokio Marine Takaful Bhd (HLTMT) is confident of achieving its target of RM200mil premiums for the current financial year ending June 30, 2010 (FY10), says chief executive officer Latiff Abu Bakar.

He said HLTMT was looking to secure nearly 50% of its target within the next 45 days with its Global Recovery Income Plan (GRIP), which was launched yesterday.

The product is its first Australian-denominated syariah-compliant investment-linked plan.

»I’m confident RM200mil is something that is achievable at this point in time« LATIFF ABU BAKAR

“With this launch, we’re looking at A$30mil, which is close to RM100mil, within the 45-day offer period.

“I’m confident RM200mil is something that is achievable at this point in time,” Latiff told reporters after the launch.

He had initially announced HLTMT’s RM200mil premium target in July. “We’re still sticking to it.”

HLTMT’s latest GRIP, its fourth capital-protection investment-linked plan, is a four-year scheme based on the concepts of murabahah and wa’ad (unilateral undertaking).

The plan is managed by HLTMT, with Citigroup Global Market Asia Ltd as the provider and Hong Leong Bank as distributor.

Latiff said the potential investment returns at maturity were benchmarked against the performances of assets consisting of equities (in the United States and Hong Kong) and commodities (crude oil and precious metals).

Initial investment starts from A$10,000 (RM29,600). There is also takaful protection of up to 125% on the investment amount.

“As the fund is offered for only 45 days starting Sept 3 and has a limited time frame, we urge everyone to take this opportunity to capitalise on this new scheme,” Latiff said.

He said annual income distribution for the first three years was fixed and was performance-based in the fourth year.

HLTMT was already working with third-party banks to come up with other investment-linked structured products, Latiff said.

He added that it planned to launch two family-based takaful products in the current financial year.

“There is a huge potential for takaful products, both general and family segments. We expect the industry to grow further as the economy improves and the benefits of takaful are better appreciated.”

Latiff said the Islamic equity market was more stable in an economic downturn.

“Islamic instruments are more conservative and not vulnerable to speculation and gambling, unlike conventional instruments.

“It is only a matter of time when we can fully overcome the current low penetration of takaful,” he said.

Citigroup Global Market Asia Ltd managing director and head of Asia-Pacific retail structured product, Harold Kim, said there had been an increase in demand for Australian-based products in Malaysia.

“Australia is close to Malaysia and there has been a lot of appetite for Aussie dollars.

“Many parents are also sending their kids to Australia for their education and need the currency,” he said.

  • E-mail this story
  • Print this story