HONG LEONG ASSURANCE VS HSBC AMANAH TAKAFUL MALAYSIA

Bil

Name Matric No.

1 Mohd Haiqal Bin Abu Bakar BG12110293

2 Phiqree Adzwan Patrick Mindot BG12110443

3 Muhammad Sayyidi Bin Hamzah BG12110307

4 Muhammad Fakhirin Bin Rosli BG12110314

5 Mohd Norshukri Bin Omar Ali BG12110300

6 Ahmad Shafiq Bin Abdul Razak BG12110010

INTRODUCTION

Hong Leong Assurance Berhad (HLA)• One of largest insurance companies in

Malaysia• Offer financial planning and protection• Bancassurance and alternative allocation

channel• Malaysia Pacific Insurance Berhad in 1972• Life insurance in1972• General and Life business of Malaysia Pacific

Insurance• subsidiary of HLA Holdings Sdn Bhd (HLAH)• new horizons for its Life Insurance business• one of Malaysia's leading domestic brands for

financial planning and protection solutions, specializing in Life Insurance products and services

INTRODUCTION

HSBC Amanah Takaful (Malaysia) Berhad Takaful operator in Malaysia its shareholders are HSBC Insurance (Asia Pacific)

Holdings Limited (49%), Jerneh Asia Berhad (JAB) (31%) and Employees Provident Fund Board of Malaysia (EPF)(20%)

officially registered on 11 August 2006 offers a wide range of Family Solidarity and General

Takaful to both consumers and corporate customers leverage on the Group’s international experience and

expertise in Islamic Finance for developing offering Takaful solutions to Malaysian consumers.

FINANCIAL RATIO (LIQUIDITY)Formulas Hong Leong

AssuranceHSBC Amanah Takaful

Acid Test Ratio =(1,330,745+(90,380+34,434)/7,205,185= 0.20

=93,451+(36,549+20,210/149,561= 1.00

Working Capital= Current Asset – Current Liabilities

= 8,311,774 - 7,205,185= RM 1,106,589

= 209,857- 149,561= RM 60,296

Current Ratio= (Current Asset)/(Current Liabilites)

= 8,311,774/7,205,185= 1.15

= 209,857/149,561= 1.403

Average Collection Period= (Account Receivables)/(Daily Credit Sales)

=1,455,559/(1,247,961/365))= 425.72 days

= 56,759/((294,946/365))= 70.24 days

Cash Ratio=(Cash+CashEquivalent+Invested Funds)/(Current Liabilities)

= 2,113,984/7,205,185= 0.29

=93451+951,353/149,561= 6.99

PROFITABILITY RATIOFormulas Hong Leong

AssuranceHSBC Amanah Takaful

Profit Margin= (Net Profit)/Sales

= 104,486/1,935,100= 0.05/ 5%

= (277,217)/294,946= 0.94/ 94.00%

Return on Assets= (Net Income)/(Total Asset)

= 104,486/10,143,746= 0.01/ 1%

= 277,217/1,174,103= 0.24/ 24.0%

Return on Equity= (Net Income)/(Shareholder^' s Equity)

Return on Equity= 104,486/200,000= 0.52/ 52%

= 277,217/100,000= 2.77/ 277.22%

EFFICIENCYFormulas Hong Leong

AssuranceHSBC Amanah Takaful

Asset Turnover= Revenue/(Total Asset)

Asset Turnover=1,935,100/10,143,746= 0.19

= 294,946/1,174,103= 0.25

Fixed Asset Turnover= Sales/(Fixed Assets)

= 1,935,100/89,795= 21.55

= 294,946/747= 394.84

Accounts Receivable Turnover= (Credit Sales)/(Accounts Receivables)

= 1,372,775/1,247,961= 1.1 times

= 294,946/56,759= 5.20 times

SOLVENCY

Formulas Hong Leong Assurance

HSBC Amanah Takaful

Debt Ratio= (Total Debt)/(Total Asset)

= 7,252,668/10,143,746= 0.72

= 1,071,349/1,174,103= 0.912

Debt/Equity Ratio= (Total Liabilities)/(Share Equity)

= 7,352,668/200,000= 36.76 times

= 1,071,349/100,000= 10.71 times

MARKET PROSPECT

Formulas Hong Leong Assurance

HSBC Amanah Takaful

Dividend Payout Ratio= Dividends/(Net Income)

= 108,000/104,486= 1.03

= 3,105/11,536= 26.92

HONG LEONG ASSURANCE – PERFECT RETIREMENT

A retirement plan

Protection and wealth

accumulation

Affordable

Benefits

affordable

Almost everyone

can qualify

Easy and flexible

Complex mechanis

m

Protection coverage

DeathTotal and

Permanent Disability

Old Age Disablemen

t

Other protection

Critical Illness

Personal Accident

Hospital and Surgical

Critical Illness

Waiver of Premium

Spouse/Payer

Waiver of Premium

Allocation Rates of Premium

Policy year

1 2 3 4 5 67

onwards

Premiums paid (RM)

1,000

1,000

1,000

1,000

1,000

1,000

1,000

Premium

allocation

(%) 40 40 75 75 85 85 100

RM 400 400 750 750 850 850 1000

PERFORMANCE OF INSURANCE INDUSTRY IN MALAYSIA

Year

Premium Income

(RM Million)

Participants

(Million)

% of GNI

of Premiu

m Income

(%)

2009 19,831.3 11.6 3.0 -

2010 21,804.7 12.0 2.9 9.95

2011 22,815.8 12.3 2.7 4.64

2012 24,929.0 12.7 2.8 9.26

2013 26,369.1 13.3 2.8 5.78

COMPARISON BETWEEN HSBC AMANAH TAKAFUL AND HONG LEONG ASSURANCE

HSBC Amanah Takaful Hong Leong Assurance

Contribution of the Takaful Product.

Premium payment for the insurance coverage.

Can be made in either single contribution or in regular contribution

Only has one choice of premium payment

Contribution will be invested in the investment according to the shariah principle.

Allocate the premium in the investment to purchase unit in the fund according to the preferred investment strategy.

CONCLUSION

HSBC Amanah Takaful is more stable Profitable and more liquid Muslims are urge to support the takaful

industry