Gibraltar BSN Leverage On BSN's Strength - The Edge Financial Daily30 Apr 2014
KUALA LUMPUR- Gibraltar BSN Life Bhd, previously known as Uni.Asia Life Assurance Bhd, will leverage on Bank Simpanan Nasional Bhd’s (BSN) strength to increase its current market share of less than 2%, said its chief executive officer Vincent Kwo.
“We are going to really look at the urban market through our agency force and the semi-urban market through the [BSN] banks,” he said, adding that it is planning to invade the rural market through post offices in different states.
Kwo was speaking to the media after the renaming ceremony of Uni.Asia to Gibraltar BSN Life yesterday.
The firm is offering its products and services through its three main distribution channels — agencies, bancassurance and PosAssurance — across Malaysia.
To recap, US-based Prudential Financial, Inc (PFI) together with BSN acquired Uni.Asia Life Assurance in January this year for RM518 million cash.
PFI holds a 70% stake in Gibraltar BSN through its subsidiary, the Prudential Insurance Company of America, while BSN holds the remaining 30%.
Kwo said with its tagline of “Refreshing approach to life insurance”, Gibraltar BSN’s main objective is to increase the life insurance penetration rate to 75% from 54% by 2020, which was highlighted by Bank Negara Malaysia in its concept paper last November.
The life insurance penetration rate, including both conventional and takaful insurance, is currently at 54%, he said.
Kwo said the insurance company aims to introduce its “Don’t Worry” product series at all the 398 BSN branches in the next one to two years.
PFI president of Asia region ex-Japan Jan van den Berg said the company is a great platform to grow its presence in Malaysia together with its partner BSN.
“It is an advantage for us to enter the market as the penetration of the life insurance rate is relatively low,” he said.
PFI, which operates in more than 20 countries around the world, had more than US$1.1 trillion (RM3.59 trillion) worth of assets under management as at Dec 31, 2013.