KUALA LUMPUR: Prudential Assurance Malaysia Bhd is not affected by the slowdown in the global insurance market due to its strong business fundamentals.
Chief executive officer Bill Lisle said the firm had implemented good corporate governance such as undertaking risk management and was confident of weathering the global crisis.
“We are in very good shape. We registered a high double-digit growth in new business premium for the third quarter ended Sept 30,” he told reporters after a briefing on the Prudential Retire-Meter 2008 survey results yesterday.
He said the company had not changed its strategic perspective and would continue to focus on its existing strategies.
Asked on the impact of the global crisis, he said the insurance industry globally had been affected in terms of confidence despite having strong fundamentals.
However, he said Prudential plc had minimal exposure in the US subprime market.
On speculation by the British media that Prudential plc would have a rights issue to raise more funds, Lisle said: “Prudential has surplus capital amounting to £1.2bil, so we are robust from the cash perspective. We have the ability to bring in more cash and we do not need any rights issue.”
He said it was possible for the global insurance industry to consolidate as it was affected by the financial crisis.
On the Prudential Retire-Meter 2008 survey, Lisle said 36% of those nearing retirement (those aged between 45 and 55) were less confident compared to a year ago due to the higher cost of living, while 81% felt that inflation had a substantial effect on their lifestyle.
“About 48% of those polled expressed concerns that they would not have enough money to take care of their retirement needs. Our survey found that although Malaysians have a high propensity to save, their current savings behaviour indicates a lack of proper planning,” he said.
He added that Malaysians were generally aware of the importance of having a sound retirement plan but most did not have a disciplined approach to retirement savings.
Prudential commissioned Research International, a global research agency, to conduct the survey, which covered key urban areas in Malaysia.
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