MAA rubbishes receivership talk: BT

Financial services firm MAA Holdings Bhd has dismissed as rubbish talk that the group or its insurance arm Malaysian Assurance Alliance Bhd (MAA Assurance) has been placed under receivership over unpaid debts, reports Business Times (April 6, 2009).
"The group has more than sufficient assets to back all liabilities," MAA Holdings chief executive officer and group managing director Muhamad Umar Swift told Business Times in an e-mail response.
It had had reported that industry sources told the newspaper that the holding company was under receivership due to bad debts, thus requiring it to sell its insurance assets.
"Pure rubbish. MAA Holdings' only loan is its RM200 million bond, which has been serviced promptly to date with no problems envisaged," said its executive chairman Datuk Tunku Ya'acob Tunku Abdullah.
He was referring to MAA Holding's medium-term notes of RM200 million.
The report goes on:
According to Bursa Malaysia filings, the group's total borrowings stood at RM231.38 million as at December 31 2008, compared with RM241.16 million in December 31 2007.
Tunku Ya'acob added that the rumours were malicious in nature and probably instigated by unprofessional agents of competitors.
Meanwhile, Muhamad Umar said that MAA Holdings was not selling its life insurance division.
The group, however, is selling its general insurance unit and a 4.9 per cent stake in its takaful unit to Ambank Group for a combined price of RM291 million.
The deal, which was announced in November 2008, is expected to be completed this month.
MAA Holdings, which has been in the red for the past three fiscal years, hopes to be profitable within the next two years.
The group's performance last year was affected by the poor investment climate, therefore detracting it from meeting an earlier forecast of posting profits in 2008.
"The investment environment impacted the group's investment yield and returns as it did with all predominantly insurance-based groups," Muhamad Umar said.
For its financial year ended December 31 2008, the group posted a net loss of RM70 million on a revenue of RM2.21 billion.
Muhamad Umar also said that total recoveries from the group's non-performing loans (NPLs) were RM251.58 million for the financial year ended 31 December 2008.
"As at end-December 2008, the total carrying amount of NPLs stood at RM450.48 million compared with RM649.92 million at end-December 2007. The 44.3 per cent improvement in net NPLs was a result of stronger debt collection and our ongoing recovery exercise," said Muhamad Umar.