Murder: Life Insurance

A woman killed her own husband in Amritsar to claim the insurance money. The husband had been unwell for a long time, which had caused a financial strain for the couple. To solve this, the wife killed her husband so as to claim the insurance money.

The incident has been reported from Bulara village in Amritsar’s Jandiala region where a woman, Narendra Kaur, accompanied her husband, Manjeet Singh, to Beas to buy his medicine on May 5. Later, the police found Manjeet’s dead body in a pool of blood.

During the investigation, it was found that his wife was the prime suspect. The Deputy Superintendent of Police (DSP), Sukhwinder Pal Singh, said, “During interrogation, Kaur admitted to her crime. She said that the house was in shambles due to financial instability. All the money was going towards her husband’s treatment who had been unwell for a long time. Being a Life Insurance Company (LIC) agent herself, she knew that she could benefit from her husband’s insurance money and so, she killed him.”

He also added that she had murdered him using a sharp weapon. The woman has been arrested and further investigation is underway.

MPHB Exit General Insurance

MPHB Capital Bhd is finally poised to exit the general insurance business, a quest it started many years ago without much success. In the latest announcement filed with Bursa Malaysia last week, the company is proposing to dispose of its 51% equity interest in MPI Generali Insurance Bhd (MPIG) to Italian insurer Generali Asia. MPIG is currently a joint venture between MPHB (51%) and Generali Asia (49%).

It sold a 49% stake to Generali in 2015 and had been looking to dispose of another 21% to the Italian insurer since 2020. If the disposal had been approved by the authorities previously, Generali would have increased its stake to 70% — the maximum shareholding allowed for a foreign insurer — and MPHB Cap would have been left with 30%.

MPHB Cap did not want to be left holding 30% of the general insurance company. It is a highly competitive industry and if the partner is not strong, holding 30% may not be worth the investment.

Affin-AXA  - On the same day the company announced the deal with Generali last week, Affin Bank Bhd told Bursa that it had obtained approval from MoF to dispose of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and a 2.95% stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia NV.

Affin Bank currently owns 51% of AALI and 49.95% of AAGI. AXA owns the remaining equity interest in AALI and AAGI that Generali has proposed to acquire. Generali holding 70% and Affin 30% in a special purpose vehicle that will carry the life and general insurance business of both companies.

Generali’s acquisition of MPIG is happening at a time when many foreign insurers are exiting or have exited the Southeast Asian market. It has been said that Generali is strengthening its presence in Malaysia as it may not have the muscle to expand in Europe.

In MPIG’s website, its shareholders’ funds for FY2020 stood at RM670.9 million. Assuming the transaction is concluded at one time book value, it potentially translates into MPHB Cap getting about RM330 million, based on its 51% stake in the joint venture.

General insurers generally command lower premiums than life insurance companies. In July last year, AMMB Holdings Bhd proposed the sale of its 51%-owned AmGeneral Holdings Bhd to Liberty Insurance Bhd (LIB) for RM2.29 billion, to be satisfied via cash and a 30% stake in LIB.

In June 2016, Swiss insurance company Zurich Insurance Group Ltd (ZIG) acquired MAA Group Bhd’s MAA Takaful Bhd (now known as Zurich Takaful Malaysia Bhd) for RM525 million, valuing the transaction at about four times book value. That was an exception, as the average price-to-book value paid for Multi-Purpose Insurans Bhd, AmLife Insurance Bhd and AmFamily Takaful Bhd by their buyers averaged 2.13 times.

AXA Exit Malaysia (Again)

Bank Bhd has obtained approval from the Ministry of Finance (MoF) to dispose of 21% of its equity interest in AXA Affin Life Insurance Bhd (AALI) and 2.95% stake in AXA Affin General Insurance Bhd (AAGI) to Generali Asia NV.

Affin Bank currently owns 51% in AALI and 49.95% in AAGI. In a statement on Monday, Affin Bank said it will enter into a share sale agreement with Generali Asia for the AALI and AAGI disposals, subject to the satisfaction of the remaining signing conditions under the implementation agreement and further announcements will be made accordingly.

Affin Bank has also agreed for the general insurance business of AAGI and MPI Generali Insurans Bhd (MPIG) to be merged under AAGI whereby AAGI will acquire certain assets and liabilities of MPIG via a business transfer to create an enlarged company, subject to the approval of BNM.

Following that, a new local company (Newco) will be incorporated to hold all of the shares in AALI and AAGI (MergeCo). Affin Bank will, in turn, be holding 30% equity interest in the Newco, with Generali holding the remaining 70%.

15 Warning Signs - You're Toxic

There are also plenty of people who are less than emotionally healthy, the kind who manipulate, lie, and cheat. Definitely the ones you want to stay far away from. You can avoid lots of trouble by knowing what to look for in a toxic person. 15 Immediate Warning Signs You're Dealing With A Toxic Person.

1. The person talks way too much and listens way too little - Dominating the conversation often signals insecurity, self-centeredness or narcissism.

2. He/she always needs to be right - No matter how big or small the topic, the toxic individual doesn’t allow room for differing opinions and turns a discussion into a debate that must be won.

3. There’s constant drama - Some people attract, and maybe need, consistent episodes of crisis, conflict, and clamor. The seem to thrive on having a big personal mess to clean up and feel uncomfortable with a calm routine.

4. Truth-telling is not a high priority - Even slight variations on what you know to be the truth, or careful omission of facts, is enough to put the person on your watch list.

5. There are signs of addiction or dependency - If left unaddressed, compulsive behavior involving alcohol, drugs, gambling, pornography, and other issues is sure to damage many aspects of the individual’s life—including your relationship.

6. Desperation is in the air - Emotionally healthy people will be eager to get to know you as an individual—not overeager to get into a relationship (any relationship) because of loneliness or neediness.

7. Conversation is salted with sarcasm - Derogatory comments and cutting humor, even if you aren’t the target, signal a lack of empathy or a need to prove superiority.

8. Straight answers are in short supply - To your direct questions, you get evasive responses, mixed messages, or contradictions. The person is cagey about where he was last night and how things are at work. If it seems like he’s hiding something, he probably is.

9. The person has a victim mentality - All of his/her problems ae someone else's fault - unreasonable boss, unloving parents, lousy roommate, the government. Constant blame-shifting usually demonstrates a lack of personal responsibility.

10. “Common folk” are treated poorly - Rude, insensitive behavior toward restaurant servers, dry-cleaners, and store clerks reveals an arrogant attitude.

11. The person likes to gossip - Rumormongering serves no purpose except to harm others’ reputations and an attempt to burnish one’s own.

12. He/she bashes the ex - Justified or not, no one wants to hear endless complaints about a former partner. There’s nothing healthy about staying stuck in the past. Move on already.

13. His/her stories seem grandiose - Exaggerations about accomplishments, acquaintances, and adventures demonstrate a need to brag, which demonstrates shaky self-esteem.

14. The person tries to control you - If you feel pressure to act and think according to someone else’s wishes rather than your own, head for the nearest exit.

15. Your gut instinct screams, “Look out!” - Trust your intuition—it’s usually a reliable guide.

Financial Monkeys Throwing Darts

Billionaire Warren Buffett gave his "annual meeting" earlier this week, which has become legendary in personal finance circles for spawning talking points that podcasters will use for years as the basis for their content.

This year, Buffett, who is now 91 and worth more than $125 billion, explained that he would rather give his money to “monkeys throwing darts” to pick stocks and investments than financial advisers. Buffett’s point, which he’s been making for many years, is that it’s very difficult to pick winning stocks, and financial advisers take fees from clients that often eat a sizable portion of any investment gains.

“It’s a good thing to own American business,” Buffett said, suggesting people should simply put money into the American economy and forget about it. "We haven't ever timed anything," he added, which means that when he buys stocks, he holds them rather than trying to buy low and sell high.

“It’s amazing how hard people make what a simple game this is,” Buffett said. “It’s too much to expect of human nature for people to explain that they aren’t really adding any value to what you can do by yourself. I hate to use the example, but you can have monkeys throwing darts at the page and, you know, take away the management fees and everything, I’ll bet on the monkeys.”

This is notable mostly because Buffett is right but also because Buffett is seen as a kind of deity among a huge swath of the financial media, especially personal finance podcasters, who use much of what he says as the basis for the advice that they then give to millions of people.

Buffett famously bet $1 million that the S&P 500 index fund of the top 500 companies in the United States would outperform a hedge fund’s active trading strategy over the course of 10 years. Active stock trading is when people actively buy and trade single stocks or groups of stocks, and try to "time" the market, meaning buy low and sell high. It is famously difficult to do, as many Redditors are currently learning on WallStreetBets.

Buffett won his bet with the hedge fund, which has been used by financial podcasters to popularize passive index fund investing—in which people buy large collections of stocks and sit on them for years—as the preferred investing strategy of the Financial Independence Retire Early (FIRE) movement that’s popular online. Buy-and-hold is also the preferred strategy of Bitcoin maximalists, though they are putting all their eggs in a single basket.

Who Is Soh Chee Wen

Many Malaysian may not know the man behind John Soh Chee Wen except perhaps his conviction alongside his girlfriend Quah Su-Ling as masterminds of Singapore’s most serious case of market manipulation-cum-deception that wiped out more than S$8 bil from the Singapore Exchange (SGX) in October 2013.

Yesterday (May 5), Singapore High Court judge Hoo Sheau Peng found Soh, 63, guilty of 180 charges of the 188 while Quah – his “long-term partner in both business and personal affairs” – was convicted on 169 of 177 charges she faced. Their sentencing will take place at a later date. Both Soh and Singaporean Quah, 58, are currently staring at a jail term of up to seven years, a fine of up to S$250,000 or both for each charge under the Securities and Futures Act.

They further face an imprisonment of up to 10 years and a fine for each charge under section 420 of the Penal Code as well as jail of up to seven years, a fine or both for each charge under section 204A of the Penal Code. Additionally, both Soh and Quah also face imprisonment of up to two years, a fine of up to S$10,000 or both for each charge under section 148 of the Companies Act.

What is intriguing about this case is not so much about the guilty verdict as this is already very much expected but the persona of the Batu Pahat (Johor)-born Soh whom friends described as a person with integrity – an individual who achieved success due to hard work and tenacity.

Soh’s background - Those who knew him back in the day remember him as an over-achiever. Having attended Batu Pahat High School – the alma mater of tycoon Tan Sri Vincent Tan Chee Yioun and now-retired DAP supremo Lim Kit Siang – Soh was an all-rounder in school.

He was president of the English and debating clubs, and active in badminton, softball and athletics. In 1979, he furthered his studies in economics in Universiti Malaya but dropped out after three days. This prompted the enterprising Soh to venture into sales where he made his first million at the age of 21 with his first direct sales company.

He was declared a bankrupt in 1984 following a credit crunch but he eventually found his true calling – turning around unprofitable listed companies using ‘unconventional’ methods till he was touted a “high profile deal maker” and much later “a fugitive businessman”.

At his peak, he controlled listed counters such as Autoways Holdings Bhd, Promet Bhd, Kelanamas Industries Bhd, Uniphoenix Corp Bhd and Kuantan Flour Mills Bhd.

Politically, Soh became an MCA member at 21. He was later elected as Petaling Jaya MCA division chief and often credited with establishing a service centre with its own staff – a first in the party’s history. This is where he caught the eyes of former party president Tun Dr Ling Liong Sik and even embarked on a business venture with Dr Ling’s eldest son, Ling Hee Liong.

In 1995, Soh was appointed to the party’s presidential council and was tasked by MCA bigwigs ‘to court’ Datuk Seri Anwar Ibrahim Anwar as he was then regarded as a Prime Minister-in-waiting material.

Soh and Anwar ended up becoming good friends while Soh’s ties with Dr Ling ended as Soh chose to march alongside Anwar in the Sept 20 reformasi rally soon after Anwar was sacked as Deputy Prime Minister in 1998.

Corporate trouble - In 1997, Soh courted major trouble with the Securities Commission (SC) after the stock market regulator launched an investigation into Soh for using nominees to gain control of brokerage firm Omega Securities Sdn Bhd.

In 1999, he was charged by the SC with two offences to defraud the now defunct stockbroking firm Omega Securities Sdn Bhd of over RM400 mil.

Soh was deemed to have violated the Malaysian law that forbids anyone from owning more than one brokerage without government approval. Soh controlled at least one other brokerage firm at the time.

In April that year, he fled the country and went into hiding. Subsequently, the SC issued a warrant of arrest against him on April 19, 2000 and sought help from the Interpol through the Home Ministry. Interpol later put Soh on their list of wanted persons.

In 2002, he returned to Malaysia and was eventually charged at the Shah Alam Sessions Court. Soh was later fined RM6 mil by the Sessions Court when he pleaded guilty to a charge of abetting former TA Securities Holdings Bhd executive chairman Datuk Tiah Thee Kian by providing false statements to the Kuala Lumpur Stock Exchange (now Bursa Malaysia) involving shares in Omega Securities.

In light of the recent Serba Dinamik Holdings Bhd’s “let-off with a slap on the wrist”, perhaps the Malaysian authorities should perform self-reflection or emulate the rigidness of their Singaporean counterparts in upholding the notion that fraud has no place in the capital markets for it can severely tarnish a country’s reputation in the eyes of potential investors. – May 6, 2022

Who Is Sam Bankman-Fried

Sam Bankman-Fried, the 30-year-old billionaire founder of crypto exchange FTX, has plans to give away the vast majority of his wealth - 99% - thanks to the philosophy of "effective altruism," which he learned in college.

Despite running a multibillion-dollar global crypto exchange, the 30-year-old drives a Toyota Corolla, lives like a college student, and has a goal of making as much money as possible so that he will have more to give away. 

Even with his massive wealth, he says he'll keep only about 1% of his earnings each year, or about $100,000.

"You pretty quickly run out of really effective ways to make yourself happier by spending money," Bankman-Fried said. "I don't want a yacht."

The MIT-grad learned of effective altruism in 2012, his junior year of college. The philosophy uses mathematical calculations to determine how people could do the most good with their money and time.

In particular, Bankman-Fried took to the notion of "earning to give." In line with that approach, he worked on Wall Street for three years after college and gave away 50% of his salary every year to donate to animal welfare

These days, he can be found sleeping on a bean bag, playing video games while giving talks on Zoom at conferences, and living with groups of friends. Nonetheless, his blasé attitude doesn't distract him from what he sees as doing the right thing.

In February after Russia invaded Ukraine, the FTX founder said his crypto exchange gave cash to all of its  Ukraine user. He also personally donated $250,000 in tether to Ukraine. 

He doesn't second-guess his decision to give most of his money away. "It's not a decision that I constantly reevaluate, because I think it just doesn't do me any good to be constantly reevaluating anything," he said. "It doesn't, minute to minute, feel to me like a decision anymore."