RPT-UPDATE 2-Manulife, Metlife submit bids for ING Asia sale -sources – Reuters
(Repeats item first issued on Saturday with no change to text)
* Shortlisted bidders will be notified by end-May – sources
* Sale could set record for Asia insurance M&A
* Eight to 10 bidders submitted offers – source
* Deal could yield about $100 mln in fees for bankers,
lawyers
By Denny Thomas
HONG KONG, May 19 (Reuters) – Manulife Financial Corp
and Metlife are among the companies that have
submitted first round bids for ING’s entire Asia life insurance
business, sources said on Saturday, in what could be the largest
Asia M&A insurance deal ever.
ING’s long awaited sale of Asian life insurance and the
asset management units will help the Dutch bancassurer to
partly repay the 3 billion euros ($3.81 billion) of state aid
plus the 50 percent premium it still owes the Dutch government.
.
The bids were submitted late on Friday and the indicative
offers ranged between 6-7 billion euros ($7.6-$8.9 billion),
according to one source with knowledge of the matter. Of the
eight to 10 companies that sent offers, a shortlist will emerge
by the end of May, the source said, adding that five bidders
expressed interest for the whole Asia division while the rest
sought parts of the business.
Still, some suitors have developed cold feet, as
demonstrated by Samsung Life Insurance’s decision on
Thursday to pull out of the race at the last minute.
. South Korea’s Kyobo Life has also dropped out,
and it was also unclear whether Prudential Financial Corp
took part in the first round.
Prudential Financial was seen as one of the strongest
contenders to buy the whole Asian unit, and its absence from the
process could be a setback to competitive dynamics of the
auction, sources said.
A sale topping $7 billion would rank as Asia’s top insurance
M&A deal and add to a flurry of financial institutions deals
being launched in Asia this year.
After receiving a government bailout in 2008, ING has sold
15.2 billion euros worth of assets across the world. The Asian
sales would figure among the top two deals from ING’s stable.
.
Asian insurer AIA Group Ltd and Korea’s KB
Financial Group also submitted first round bids,
sources said. Korea Life Insurance Co, Canada’s Sun
Life Financial Inc, and Switzerland’s Zurich Insurance
Group, were also expected to submit offers.
U.S. private equity fund J.C. Flowers & Co, TPG and
Carlyle Group are among the buyout shops that have expressed
interest, though they are expected to team up with a bidder to
buy the Japanese business rather than bid on their own, sources
said.
The sources declined to be identified because details of the
auction process remain confidential. ING declined to comment.
Companies mentioned in this report either could not be
reached for comment, or declined to comment.
As part of the Asian divestment, ING received about 10
initial bids for its Asian asset management business this week.
The asset management business, expected to fetch between $500
million and $600 million, is being sold separately.
.
ING had sent out more than a dozen information memorandums
for its insurance business, which spans southeast Asia and
includes operations in Japan and South Korea. A winning bid by a
larger insurer could introduce more competition into Asia’s
rapidly growing life insurance market, currently dominated by
AIA Group Ltd and British insurer Prudential plc
.
RARE ASSET
ING’s Asian operations offer a platform for insurers keen to
expand their Asian footprint and tap into the region’s rapid
premium growth. Life insurance premiums in emerging Asia are
forecast to grow at 9.5 percent this year and 8.7 percent next
year, nearly three times the world average, according to Swiss
Re estimates.
“This is a once-in-a-lifetime opportunity which many CEOs
will find hard to let go,” said one banker who is advising a
potential buyer.
ING CEO Jan Hommen said last week that the Asian divestments
would probably fetch less than 8 billion euros ($10.2 billion).
A deal would need to surpass $7.06 billion to become Asia’s
biggest insurance deal and overtake Australian fund manager
AMP’s 2011 purchase of AXA’s Australian unit, Thomson
Reuters data shows.
For a factbox on major deals, click on
Most buyers are likely to place aggressive bids in the first
round in order to advance to the second round. But the deal has
its own challenges and not all bidders are keen to lay their
hands on the entire Asian pie.
Potential buyers are most wary of ING’s Japan insurance
business due to uncertainty over liabilities arising from
variable annuity products on its books there..
ING’s Southeast Asian operations are the most sought after,
sources said. ING has indicated that it prefers bids for the
whole Asian business, though it is allowing offers for three
geographic regions: Southeast Asia, South Korea and Japan.
ING has prohibited bidders from forming consortiums in the
first round though those who move into the second round could
join hands and break up the asset.
ING’s decision to invite bids for geographic portions as
well as its entire Asia operations is designed to enhance bid
competition and maximise sale value, sources said.
ING plans to hold management presentations for the
shortlisted bidder by mid-June sources added.
The sources were not authorised to speak to the media.
All companies mentioned in this report either declined to
comment or could not be reached for comment.
BANKERS’ PAY DAY
ING operates across seven Asian centres. Profits from its
Asia-Pacific insurance operations rose 39 percent in the first
quarter of 2012 from a year ago to 218 million euros ($282.2
million), according to the latest company filings.
South Korea and Japan accounted for 77 percent of the
profits while Malaysia accounted for 10 percent. Japan accounted
for about 45 percent of Asia-Pacific’s underlying profit before
tax, followed by South Korea and Malaysia.
For investment banks starved of IPOs and M&A deals, ING’s
Asian divestment could provide a much needed boost. Bankers and
lawyers stand to earn about $100 million in fees if the deal is
completed, some sources said.
By winning the sell-side mandate, Goldman Sachs and
J.P. Morgan are best-placed to earn a slice of the fee
pool. Their final payout will hinge on the structure of the deal
and the final price among other factors.
Freeman & Co estimates banks could make $60 million to $70
million in advisory fees, excluding financing, hedging and other
revenue streams. The calculation does not include lawyers’ fees.
The M&A advisory fees will be the most significant but there
could be additional money made on forex and interest hedging
given the cross-border nature of the transaction.
($1 = 0.7869 euros)
(Additional reporting by Clare Baldwin and Miyoung Kim; Editing
by Mark Bendeich, Michael Flaherty and Daniel Magnowski)
10 ways to save money on life insurance – NASDAQ
Read the Spanish version: 10 maneras de ahorrar dinero en tu seguro de vida
Just as there are different life insurance plans to meet your needs, there are different ways to save money on life insurance .
Most importantly, shop around for life insurance quotes. There are hundreds of insurance companies offering a wide variety of plans and prices. Comparison shopping can save you big bucks. In addition, here are 10 more ways you can save money on your next life insurance purchase.
1. Consider term life insurance
Some financial planners advocate permanent life insurance policies with cash value components because the policies force you to save money. Others recommend you buy term life insurance for the cheaper premium and invest the difference.
But cash value in life insurance should not be considered a traditional investment. Any withdrawals or loans not repaid will reduce your death benefit. Also, if you take a partial withdrawal from the cash value of your policy in an amount greater than your total premiums, the withdrawal in excess of your total premiums is considered taxable income.
Furthermore, the difference in premiums between term vs. permanent life insurance is not just a matter of a few dollars per year. According to the Society of Actuaries, premiums for whole life can be five to 10 times higher than the same amount of level term life, depending on the kind of level term being compared. For example, if you’re comparing the premiums of 30-year level term it will be a smaller multiple, while premiums on a 10-year term policy could be a larger multiple.
Every time you renew term life insurance, your premiums will increase. Renewing a short term life insurance policy over and over isn’t a wise use of money. Instead, buy a long term life insurance policy, or buy whole life insurance if you definitely want to leave money to your heirs.
People with a short-term need generally include those who want life insurance to cover a specific debt – like paying off a mortgage.
2. Seek out low-load life insurance policies
“No-load” or “low-load” life insurance policies have fewer expenses built into them, such as agent commissions and fees, than other life insurance policies. This can mean low cost life insurance. For variable life insurance, these lower expenses mean a higher percentage of your premium goes to work for you right away, allowing you to build your cash value faster.
Not many companies sell no-load or low-load policies. No-load policies can be purchased mainly through financial advisors who charge flat fees rather than collecting commissions from insurance companies. Those that sell no-load policies include Ameritas Advisor Services and TIAA-CREF. Also, these policies may not be available in all states.
3. Don’t buy a guaranteed issue policy if you’re healthy
|
With some guaranteed issue policies, you could end up paying more in premiums after only a few years than your beneficiaries might ever receive from the death benefit. |
“Guaranteed issue” life insurance policies require no medical exam but may ask a few basic medical questions. Guaranteed issue policies are riskier for the insurer and are, therefore, more expensive than fully underwritten insurance policies.
Guaranteed policies are generally purchased by people who have difficulty obtaining life insurance due to medical problems. If you have some medical problems you’re still likely to get better life insurance rates by opting for an underwritten policy, for which you take a medical exam.
The high premiums, combined with a low face amount for the death benefit, can make guaranteed issue life insurance a less desirable option. With some of these policies, you could end up paying more in premiums after only a few years than your beneficiaries might ever receive from the death benefit.
4. Shop for life insurance online first
While not all online life insurance quoting services will give you the rock-bottom price for term life insurance, they can still be a useful source of information about prices. Just remember, the more personal information you give, the more accurate your life insurance quotes will be. Your “lowest quote” should be used as a baseline for shopping around.
5. Improve your health
Health problems make it hard to buy life insurance. High blood pressure, diabetes and heart disease are among those conditions that can make life insurance companies pump up your rate.
|
If you have a pre-existing medical condition that could lead to higher rates, you’ll make your underwriters happier and probably get yourself lower life insurance premiums by showing your insurer a history of improving your health. |
Then there are rates for smokers and other nicotine users. There’s no escaping a high life insurance price, but shopping around is wise. Some insurance companies will consider you a “nonsmoker” only if you’ve never smoked. Others require you to be “nicotine-free” anywhere from six months to five years to obtain a non-nicotine rate.
If you smoke marijuana, pipes or cigars, but not cigarettes, you still should admit to being a smoker on the policy application.
Insurance companies may request urine or saliva tests to check for the presence of nicotine. If you chew tobacco, you might end up paying smoker rates for your life insurance policy.
Another major health factor is weight. If you’re healthy but somewhat overweight, you will likely be quoted higher rates too.
If you have a pre-existing medical condition that could lead to higher rates, you’ll make your underwriters happier and probably get yourself lower life insurance premiums by showing your insurer a history of improving your health, taking your medications regularly and acting responsibly about your health.
6. Buy only what you need
Nailing down a formula for how much life insurance is an imprecise science. You should ask yourself how much money it will take to maintain your family’s lifestyle if you were to die. Do you have money earmarked for your children’s education? For methods to calculate a life insurance amount, read How much life insurance do you need?
|
Reexamine your policy whenever you have a major life change. |
Experts advise that you do an analysis annually or at least once every three years. Also, you should always reexamine your policy whenever you have a major life change. For example, if you have a new baby, you have to recalculate college education needs and child-care costs. If you own a home, a mortgage is likely your biggest financial burden. Because your mortgage balance decreases with each payment, it’s important to include those revised figures in your calculations.
7. If you need more life insurance, consider a rider as opposed to a new policy
Just because your needs change doesn’t mean you should run out and buy a new life insurance policy. In many cases, a rider adding extra coverage to an in-force whole life insurance policy can let you expand your coverage without sacrificing your built-up cash value. Ask your agent if there’s a charge for adding a rider.
8. Buy as life insurance soon as the need exists
An advantage to buying life insurance as soon as possible is that your premiums are lower. As you age, life insurance gets more expensive. Many term policies give you the option to renew your coverage at the end of the term without undergoing another medical exam. You also can lock in premiums by asking for a “level premium” policy, which means for a specific time period, say 20 years, your premium rate stays the same. After that term expires, your rates will increase. But if you don’t have any dependents, your money may be better spent elsewhere.
9. Pay your insurance bill annually
|
Avoid “fractional premium” charges by paying your bill annually. |
Once you’ve found the best insurance policy for your needs, find out if you can save money by paying annually. Some insurers charge fees for monthly billing.
In general, the fewer payments you make over the course of the year (known as fractional premiums), the less you’ll pay overall. Also, some insurers charge less if they can transfer the premium payments directly from your checking account.
10. Ask for a reevaluation if your health improves
It’s possible to save money even after you’ve bought life insurance. Just because you’ve been put in a relatively expensive rate class doesn’t mean you’re out of luck forever.
If you’re paying higher premiums because of a specific health condition, ask your insurance company if you can apply for a rate reconsideration if your health has improved and you’ve sustained better health for at least a year.
If you’ve established a history of lowering your blood pressure, cholesterol, or any other controllable rate-increasing factors, many insurance companies will reevaluate your premiums if asked.
- Related Articles
- Life insurance basics
- More life insurance stories
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
Life Insurance in Canada is Easy to Find with Online Comparison Tool from Get Life Quote – Emailwire
(EMAILWIRE.COM, May 18, 2012 )
Ontario, Canada — While the majority of Canadians recognize the importance of having a sufficiently funded retirement plan, a recent poll by TD Insurance Risky Business showed a large number of them do not place the same amount of emphasis on having a secure life insurance policy.
According to the poll, 31 per cent of Canadians do not have life insurance policies and another one-third of individuals worry their current life insurance policies will not adequately protect their loved ones.
Adding to the issue, life insurance rates can vary greatly between providers and policies, making it difficult for people to know which one to choose.
Getting a lot of attention for their free, easy-to-use online life insurance comparison tool, GetLifeQuote.ca helps people throughout Canada find the best possible life insurance plans for their unique needs. Once a customer completes the site’s simple online form for life insurance in Canada, the site quickly searches through thousands of insurance plans and provides them with quotes from the top providers in the country.
There are a number of factors that influence the cost of a person’s life insurance plan. Providers take into account a person’s age, health, lifestyle and occupation. For people who work in hazardous conditions or who have existing health issues, their insurance premiums will likely be higher.
The type of insurance a person chooses also determines the cost of their plan. And whether a person is interested in purchasing a term life insurance plan or a whole life insurance plan, GetLifeQuote.ca helps them find the best and most cost-effective policy to suit their needs.
According to the site, “Our professional life insurance experts have years of experience in searching through and comparing life insurance plans. If you’re ready to get a free life insurance quote, our team will conduct a thorough search of thousands of insurance plans across the country and provide you with the best possible rate.”
In addition to providing free life insurance quotes, GetLifeQuote.ca features a wide range of detailed and informative articles about the importance of having life insurance and the things to consider when choosing a plan.
For more information or to get a free life insurance quote, visit http://www.GetLifeQuote.ca
About GetLifeQuote.ca:
Backed by years of experience in the life insurance industry, GetLifeQuote.ca helps people throughout Canada find the right insurance plan to fit their needs. The site’s free, easy-to-use online life insurance comparison tool allows customers to quickly compare insurance quotes from the top providers in the country. The company’s team is experienced in mortgage insurance, disability insurance, life insurance and critical illness insurance. There is no charge for the site’s services and absolutely no obligation to proceed with any quotes.
###
Bloomfield Hills widow wins million-dollar court battle against insurance company – Detroit Free Press
Sherman Kay bought a $2-million life insurance policy in 2001 because he wanted to provide for his aging wife and his blind and disabled adult son.
In the years that followed, the Franklin physician and construction company owner paid $350,000 for the policy — $4,062 per month.
But when he died in January 2009 after having a series of strokes, the insurance company refused to honor his 82-year-old widow’s claim.
The reason: Claire Kay was late with the last payment.
“Their conduct was outrageous,” her lawyer, Mayer Morganroth of Birmingham, said Friday.
Without the insurance proceeds, he said, the widow couldn’t pay her husband’s debts or their mortgage on their home, which she eventually lost.
On Wednesday, a federal court jury in Ann Arbor ruled in a lawsuit that United of Omaha Life Insurance Co. had breached the terms of the insurance contract. By the time Morganroth finishes tabulating hefty interest penalties and attorney fees, he said the damages likely will top $3 million.
The company wouldn’t discuss the verdict.
“It is our practice not to comment on litigation,” a spokesman for the company’s parent, Mutual of Omaha, said Friday. It’s unclear whether the company will appeal the decision or try to settle with Morganroth.
According to trial testimony, the Kays had been late on several premium payments and sometimes exceeded the grace period. But the company always accepted the payments and kept the policy in force.
Things changed after their insurance agent alerted the company in August 2008 that Kay was seriously ill, Morganroth said.
In December 2008, court records show, the premium notice arrived after the Dec. 12 due date, and Claire Kay said she didn’t see it. After her husband died Jan. 23, 2009, she discovered the oversight and quickly mailed two payments.
Morganroth said the company returned them, telling her the policy was paid in full. Then, it terminated the policy and refused to honor her death claim.
The company countered in court that it sent the Kays three premium notices for the December payment and was willing to accept payment after the 31-day grace period and beyond if Kay were still alive. By the time Claire Kay responded, her husband had died.
The eight-member jury deliberated about four hours after a five-day trial before issuing the verdict.
Contact David Ashenfelter: dashenfelter@freepress.com
Accenture Launches Cloud-Based New Business and Underwriting Software Application for Life Insurance – Yahoo Finance
ORLANDO–(BUSINESS WIRE)–
Accenture (NYSE: ACN – News) has unveiled a cloud-based version of its award winning life insurance new business and underwriting software. Part of the Accenture Life Insurance Platform, Accenture’s life and annuity insurance software suite, the software component is now available with a Software as a Service (SaaS) licensing option, and is designed to help life and annuity insurers drive growth and profitability and expand into new market segments, while helping reduce costs.
“Life insurance and annuity carriers today face intensified pressures to reduce costs and improve efficiencies across the full policy lifecycle in a way that drives market advantage,” said Mitchel F. Ludwig product line lead of Accenture Software for life insurance. “Software applications can help insurers achieve high performance in this environment by streamlining the new business and underwriting process, while better analyzing risk and lowering the cost of issuing policies.
“By offering a cloud-based deployment option, we help insurers further reduce costs by allowing them to match their underwriting processing capacity with fluctuating demand. The component delivers leading underwriting templates, rules and processes without the need to host and support a new technology system; this allows for rapid implementation and time-to-value.”
The new business and underwriting component of Accenture Life Insurance Platform provides features that help improve efficiencies and reduce costs, including:
- An automated and configurable rules-based decision engine, which enables life and annuity insurers to rapidly and consistently analyze underwriting risk, reduce the need for manual intervention, and accelerate the new business application process. Based on Accenture’s analysis of leading-practice underwriting guidelines, the engine reacts to consumers’ application responses by asking additional reflexive questions, and makes a series of underwriting decisions – including whether to “instant issue,” request additional information from third-party sources, or refer the case to an underwriter. The application enables automated workflow processing and requirements tracking for each step of the new business lifecycle, from initial application entry through to policy issue.
- An underwriting workbench, which enables better collaboration among agents, case managers and underwriters, by allowing them to document, review, track and revise financial and medical underwriting requirements for policy applications. The workbench automatically generates tasks to track actions required on a case, and provides a consolidated view of essential case management data, including impairments, requirements, case notes, related application and reinsurance information.
- Easy and seamless integration with third-party data and systems to help insurers further streamline and automate the underwriting process and increase the consistency and speed of underwriting. The new business and underwriting component can operate in any application environment, leveraging ACORD-standard messaging to attain seamless integration with insurers’ existing systems.
The solution can be delivered through the cloud or as an on-premise application. In an on-premise approach, insurers that have the information technology (IT) resources and capacity to host the system internally, can adapt the solution according to their needs and customize specific underwriting processes.
New Actuarial Engine Unveiled
Accenture has also unveiled a new actuarial calculation engine to help life insurers reduce the time to launch new products. The Accenture Actuarial Calculation Engine, which is also part of Accenture Life Insurance Platform, can be deployed as a standalone solution in support of any legacy third-party IT system.
The calculation engine is a highly configurable software application designed to support standard mathematical, financial, statistical and actuarial calculations that are needed to implement new complex life insurance products. The solution is designed to help insurers meet the needs of a rapidly changing market by featuring advanced capabilities, including:
- Robust and highly configurable calculation capabilities: the engine provides a comprehensive library of calculation components, including more than 200 ready-to-use templates which define the standard calculations required to support life and annuity products. It also includes pre-configured user functions, actuarial tables and matrices.
- Extended product definition capacity: the calculation engine is delivered with standard life insurance and annuity components including over 600 standard calculations and over 200 pre-defined product matrices. These calculation components provide the building blocks for product definition. Users can introduce any calculation needed for product development.
- Streamlined and integrated product testing functionalities: insurers can debug and test new products using a single calculation engine for each step of the product development process. Tables, matrices and calculations that are created can be immediately debugged and tested once all components have been developed.
“Accenture is working very closely with many of the world’s leading life and annuity insurers,” said Daniele Presutti, managing director of Accenture Life Insurance Services. “This industry experience and knowledge has given us an advantage in building the leading processes and methodologies into our software and enabling us to anticipate market needs. We are leveraging this insight to continuously enhance Accenture Life Insurance Platform and provide a solution that helps life and annuity insurers of all sizes stay ahead of the curve.”
About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 246,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
Accenture Software combines deep technology acumen with industry knowledge to develop differentiated software products. It offers innovative software-based solutions to enable organizations to meet their business goals and achieve high performance. Its home page is www.accenture.com/software. For Life Insurance software, its home page is www.accenture.com/lifesoftware.
Korea Life Insurance Co Ltd (088350.KS) – Reuters
SEOUL, March 23 – Korea Life Insurance Co Ltd
said on Friday that it has placed a final bid for a
controlling stake worth about $875 million in Tong Yang Life
Insurance Co Ltd.
* Prudential picks BofA Merrill for possible ING Asia bid-
media
* Other Korean institutions eyeing bids for ING’s Korea
assets
Online Insurance Marketplace Specializes in Selling Family Life Insurance – PRWeb
Los Angeles, CA (PRWEB) May 18, 2012
Online Insurance Marketplace, a family life insurance company where individuals can purchase no medical exam life insurance, has announced that they created tips for people who want to buy life insurance for their families on their site.
The online tips explain that individuals of any age can get much cheaper rates by buying no health exam life insurance, because they will not be charged a higher rate based on their health status. Individuals interested in no exam life insurance, can visit the page, fill out their information, and compare online quotes from various life insurance companies.
“We want to educate the public about the importance of buying life insurance,” said Russell Rabichev, Marketing Director for Online Insurance Marketplace. “Most people do not know that they can, and often should, protect themselves with life insurance to make sure their loved ones are taken care of in the event of their passing.”
Online Insurance Marketplace is an online provider of life, home, health, and auto insurance quotes. It is unique in that this website does not simply stick to one kind of insurance carrier, but brings the clients the best deals from many different online insurance carriers. This way, clients have offers from multiple carriers all in one place, this website. On this site, the client will have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.
For more information, visit http://www.onlineinsurancemarketplace.com.
# # #
Living Insurance coverage Is An Significant Resolution And These Sugge – 1UP.COM
Life insurance is a very complex subject. Searching for a top-notch and low cost life insurance policy is a hard task to accomplish, then on top of that you need to figure if the needs of your family will be met. The following paragraphs contain the insights you can use to find the plan optimized for your coverage needs and budget. It is important when you are buying life insurance air max 2012, air max 90, air max 2011 that you understand how insurance agents get paid.
When choosing between term life or whole life insurance, you may decide to lean towards term life insurance. It is much more cost effective to invest in a term life policy. With the higher cost of whole life, term life offers savings and options to change the policy at term-end.
Compare life insurance policies from many different companies before settling on one. For instance, Company A’s policy might be renewable in one-year increments, while Company B’s might be renewable in two-year increments. Also, two of the same policy could have similar benefits, but one could be more costly than the other. Research thoroughly to find the right policy for you.
Determine the reason for buying the life insurance policy before you buy it. Perhaps someone advised you to get one without knowing more about your situation. Life insurance is primarily useful for people who have dependents relying on their income, such as partners or children. Life insurance policies will take care of their expenses, should something happen to you. While it is cheaper to get a policy the younger you are, make sure you are doing it for the right reasons.
You must buy life insurance that nike air max comes from an established and reputable company. The quality and reliability of life insurance companies varies significantly. Do your research and find companies that have been around for a while, have a good reputation in their quality investments, and are financially solid.
Advice from financial advisers and brokers should be taken with a grain of salt, especially if the individual stands to benefit from your willingness to sign up. For example, any agent that will not provide a rating, or that tries to undermine the significance of a poor rating, should not be trusted. Overly shady agents should be reported.
Stay away from brokers who are overly pushy or arrogant about their knowledge when trying to sell you life insurance. There are many times when brokers assume that every life insurance policy is a one-size-fits-all matter.
You must be proactive if your term insurance policy is set to expire soon. At this point, healthy individuals with no major medical conditions should consider renewing the policy for an additional term. However, if your overall health has declined steadily over the term, it may be in your best interest to opt for a more permanent policy. This circumvents the need for a secondary medical examination and through the long run, a permanent life insurance plan can add up to cheaper overall costs.
The better your health when you are shopping for life insurance, the less you will have to pay. If you need to lose weight or stop smoking, do it now! Life insurance can be expensive. It can cost you even more if you’re not healthy. Prior to taking out a policy, focus on becoming more physically fit. Adopt a better diet, start exercising and quit smoking for instance. This can drastically cut your costs.
Because this is so crucial to them, you should know all the relevant information so that you are able to select the right policy. Apply the tips you have just learned and keep looking for more resources. A great life insurance tip that everyone would be wise to not is to never lie on your insurance application.
CORRECTED-ING Asia life insurance sale shifts into top gear – Reuters
* First round bids due on Friday
* Short listed bidders could be known before end-May
* Sale could set record for Asia insurance M&A
* A dozen suitors received information memorandums
* Deal could yield about $100 mln in fees for bankers,
lawyers
By Denny Thomas
HONG KONG, May 18 (Reuters) – Global insurers Manulife
Financial Corp, Metlife and Prudential
Financial Corp are among suitors expected to place
first-round bids on Friday to buy ING Groep’s Asia life
insurance unit in a deal worth about $6.5 billion to $7 billion,
sources familiar with the matter said.
A sale topping $7 billion could rank as Asia’s top insurance
M&A deal and would help the bailed-out bancassurer repay the 3
billion euros ($3.81 billion) of state aid plus the 50 percent
premium it still owes the Dutch government..
ING has turned into a divestment machine since receiving the
state aid and has sold 15.2 billion euros worth of assets across
the world. The Asian sales would figure among the top two deals
from ING’s stable..
As part of the Asian divestment, ING received about 10
initial bids for its Asian asset management business this week.
The asset management business, expected to fetch between $500
million and $600 million, is being sold separately.
.
ING sent out a dozen information memorandums for its
insurance business, which spans southeast Asia and includes
operations in Japan and South Korea. A winning bid by a larger
insurer could introduce more competition into Asia’s rapidly
growing life insurance market, currently dominated by AIA Group
Ltd and British insurer Prudential plc.
AIA, part-owned by AIG, is among the Asian bidders
expected to participate in the auction. Other suitors include
South Korea’s KB Financial Group, Korea Life
Insurance Co, Canada’s Sun Life Financial Inc
, Switzerland’s Zurich Insurance Group and
Italy’s Generali.
U.S. private equity fund J.C. Flowers & Co is one of a
handful of buyout shops interested in the process, sources said.
But some suitors are getting cold feet, as evident by
Samsung Life Insurance’s decision on Thursday to
pull out of the race at the last minute..
RARE ASSET
ING’s Asian operations offer a ready platform for insurers
keen to expand their Asian footprint and tap into the region’s
rapid premium growth. Life insurance premiums in emerging Asia
are forecast to grow at 9.5 percent this year and 8.7 percent
next year, nearly three times the world average, according to
Swiss Re estimates.
“This is a once-in-a-lifetime opportunity which many CEOs
will find hard to let go,” said one banker who is advising a
potential buyer.
ING CEO Jan Hommen said last week that the Asian divestments
would probably fetch less than 8 billion euros ($10.2 billion).
Sources said bidding was unlikely to reach that far and that
offers might not climb much past $7 billion. A deal would need
to surpass $7.06 billion to become Asia’s biggest insurance deal
and overtake Australian fund manager AMP’s 2011
purchase of AXA’s Australian unit, Thomson Reuters data shows.
Most buyers are likely to place aggressive bids in the first
round in order to advance to the second round. But the deal has
its own challenges and not all bidders are keen to lay their
hands on the entire Asian pie.
Potential buyers are most wary of ING’s Japan insurance
business due to uncertainty over liabilities arising from
variable annuity products on its books there..
ING’s Southeast Asian operations are the most sought after,
sources said. ING has indicated that it prefers bids for the
whole Asian business, though it is allowing offers for three
geographic regions: Southeast Asia, South Korea and Japan.
ING has prohibited bidders from forming consortiums in the
first round though those who move into the second round could
join hands and break up the asset.
Around six bids are expected for the whole business, sources
said. Other bids are expected for geographic chunks.
ING’s decision to invite bids for geographic portions as
well as its entire Asia operations is designed to enhance bid
competition and maximise sale value, sources said.
The short-listed bidders are expected to be notified by the
end of May and ING plans to hold management presentations in
mid-May, sources added.
The sources were not authorised to speak to the media.
All companies mentioned in this report either declined to
comment or could not be reached for comment.
BANKERS PAY DAY
ING operates across seven Asian centres. Profits from its
Asia-Pacific insurance operations rose 39 percent in the first
quarter of 2012 from a year ago to 218 million euros ($282.2
million), according to the latest company filings.
South Korea and Japan accounted for 77 percent of the
profits while Malaysia accounted for 10 percent. Japan accounted
for about 45 percent of Asia-Pacific’s underlying profit before
tax, followed by South Korea and Malaysia.
For investment banks starved of IPOs and M&A deals, ING’s
Asian divestment could provide a much needed boost. Bankers and
lawyers stand to earn about $100 million in fees if the deal is
completed, some sources said.
By winning the sell-side mandate, Goldman Sachs and
J.P. Morgan are best-placed to earn a slice of the fee
pool. Their final payout will hinge on the structure of the deal
and the final price among other factors.
Freeman & Co estimates banks could make $60 million to $70
million in advisory fees, excluding financing, hedging and other
revenue streams. The calculation does not include lawyers’ fees.
The M&A advisory fees will be the most significant but there
could be additional money made on forex and interest hedging
given the cross-border nature of the transaction.