Fairfax Buying Paninvest

Fairfax Financial Holdings Ltd., the Canadian investment firm led by Prem Watsa, is in advanced talks to buy control of Indonesian financial group PT Paninvest’s non-life insurance unit, people with knowledge of the matter said.

The transaction would value the Jakarta-based business at about $200 million, according to the people, who asked not to be identified as the information is private. Shares of the Paninvest unit, formally known as PT Asuransi Multi Artha Guna, jumped as much as 13.6 percent in Jakarta trading Tuesday to hit the highest level since September, giving the insurer a market value of as much as 2 trillion rupiah ($151 million).

An agreement could be announced in the next few weeks, according to one of the people. The deal being discussed comes with a so-called bancassurance agreement, which would allow insurance products to be distributed and sold through the branches of Paninvest’s lending affiliate PT Bank Pan Indonesia, the people said.

Foreign insurers have been drawn to Southeast Asia as increasing wealth leads to rising demand for coverage. A deal would add to the $5.2 billion of acquisitions in the Indonesian financial industry over the past three years, according to data compiled by Bloomberg.

“Indonesia is a market with a lot of potential for global insurance companies,” John Teja, director at PT Ciptadana Securities, said by phone from Jakarta on Tuesday. “For Indonesian companies, being associated with a good foreign name can lift their credentials and can attract more customers.”

Share Jump

Paninvest shares jumped as much as 4.8 percent in Jakarta trading Tuesday and were unchanged at the mid-day break. Bank Pan Indonesia’s biggest shareholder, PT Panin Financial, rose as much as 3.6 percent, the most intraday in almost a week.

An agreement hasn’t been reached yet, and there’s no certainty the talks will result in a transaction, according to the people. Any deal would be subject to regulatory approvals, the people said. 

Fairfax President Paul Rivett didn’t immediately respond to requests for comment. A representative for Asuransi Multi Artha Guna didn’t immediately respond to an e-mail seeking comment outside regular business hours in Jakarta.

Value Investor

Fairfax’s Watsa, often compared to Berkshire Hathaway Inc.’s Warren Buffett for his contrarian and value-investing style, has purchased insurers around the world including in Ukraine, the U.S. and the Middle East. Since the start of 2014, the Toronto-based firm has bought stakes in BIDV Insurance Corp., a property and casualty insurer in Vietnam, as well as Malaysian general insurer MCIS Insurance Bhd. and Indonesia’s PT Batavia Mitratama Insurance.

Thailand’s Siam Commercial Bank Pcl is exploring bringing in a foreign partner for its life insurance operations, which could fetch a valuation of at least $3 billion, people familiar with the matter said last month. Sompo Japan Nipponkoa Holdings Inc. is nearing an agreement with CIMB Group Holdings Bhd. to distribute general insurance products through the Malaysian lender’s branches across Asia, people with knowledge of the matter said earlier.

PT Bank Rakyat Indonesia, the country’s most profitable lender, canceled the sale process for a 40 percent stake in its life insurance arm, people with knowledge of the matter said in January. BNP Paribas Cardif, an arm of France’s largest bank, had been vying with Hong Kong billionaire Richard Li’s FWD Group and South Korea’s Hanwha Life Insurance Co. for the holding, valued at $400 million to $500 million, the people said at the time.

Medical Tourism

Sometimes those who are in need of medical care find treatment in another state or country. In these cases it becomes necessary for the patient, and possibly a friend or family member, to travel and take a vacation. These are often referred to as medical vacations or medical tourism. Taking a medical vacation means that you will have access to treatment or better treatment for a condition than you might at home.

Procedures
There are many different reasons why someone might seek medical assistance outside of their hometown. Just as there are a few common reasons why some travel outside of the U.S. for treatment. Some of the most common treatment categories for procedures outside of the U.S. include orthopedic surgery, cardiac surgery, oncologic care, dentistry and cosmetic surgery. Some people have also traveled for assisted pregnancy treatments, including in-vitro fertilization, freezing embryos and surrogacy. In most cases, patients believe they can receive the same quality of care, if not better, elsewhere for a more affordable price.


Destinations
There are many destinations around the world that offer quality medical care and treatment options. Some of the most common destinations for medical care include Thailand, India, Cuba, Brazil, Costa Rica, Argentina, Singapore, Mexico and Malaysia. Popular destinations for cosmetic surgery include Bolivia, Brazil, Colombia, Ecuador, Turkey, Thailand and Ukraine.

Benefits
There are many different benefits to taking a medical vacation. The most important benefit is being able to have access to the best possible medical care for the condition the patient is suffering from. Another benefit is affordability. Though it may cost more money to travel, the amount of money a patient can save having certain procedures and treatments done can be significant. There are also some who travel for medical treatment from doctors who have the same beliefs and cultural background.

Another benefit is time. In some countries, patients have to wait a long time before being able to receive the treatment they need. It could be weeks, if not months, before a patient is able to undergo surgery that is voluntary or non-life threatening. Some patients have traveled overseas because they are able to get the transplants they need when they need them, instead of having to sit on a wait list. Costs

Costs   Because treatment is being sought outside of the U.S., most medical insurance carriers will not cover the treatment nor the travel involved. It is up for the patient to cover all costs out of pocket. There are some private companies that offer concierge-like services, including travel, accommodations, food and medical treatment for one price. No matter how the patient plans to travel to receive treatment, he or she is responsible for all of the costs.

Risks    Just like having medical treatment here in the US, there are risks associated with traveling to another country for treatment. In some cases, there are even higher risks associated with medical care in a foreign country. Some risks involved include complications, infections, exposure to outbreaks and lack of post-treatment care.

Other risks include those associated with receiving treatment from a facility or doctor that does not meet the quality of standards needed for professional health care treatments. To help reduce the risks of being treated by a doctor or facility that is not properly trained or offers a clean facility, check with international healthcare accreditation organizations for certifications. These organizations certify various healthcare programs, including hospitals, care centers, doctors, medical transport services and more. They only certify those who meet a certain level of training and standards. In the U.S., you can check with the Joint Commission International, which helps provide international clients with consultant services for those seeking treatment elsewhere.

Extras    If time allows and the patient is well enough, he or she will be able to explore the city they are visiting for treatment. If you are traveling for medical treatment, ask your physician if it is possible to do some sightseeing while there. This will make the money spent on traveling feel like it was used for more than just getting medical treatment, and you get to see something new and exciting while there.

Tips    Those who plan to travel for medical treatment should consultant with someone who specializes in travel healthcare. He or she will be able to guide you to finding the right care facility, costs and help set up travel plans. Also, make sure to allow enough time to recover before traveling again. It may be necessary to abstain from flying or travel long distances for up to 10 days to two weeks after treatment or surgery.

No matter what the reason may be for needing to travel outside of the country for medical treatment, it is important to make sure you are able to afford the time away from home, the costs and know the risks associated with a medical vacation. If done properly, a medical vacation can mean you receive the treatment you need when you need it.

Suicide Is Covered in Life Insurance

Life insurers have been ordered by the Financial Supervisory Service to make payouts owed to the families of clients who committed suicide, even if those families didn’t file before the two-year deadline. As of February 26, life insurers had not paid 246.5 billion won on 2,314 claims involving suicides. Of those claims, 81 percent or 200.3 billion won hadn’t been filed before the industry-wide deadline. 

The announcement by the financial watchdog on Monday came after the Supreme Court ruled on May 12 that life insurers should give the additional payouts they owed to the families of clients who committed suicide and were subscribed to certain policies with accident coverage. 

These policies mistakenly categorized suicide as a type of accident and were sold between 2001 and 2010, when the companies realized the error. 

The issue first emerged in 2012, when a man with one of the old policies committed suicide. The man’s parents discovered that his suicide was technically covered and went on to sue his insurer. 

But even after the Supreme Court ruling, the companies have delayed making the payouts by claiming many of the families failed to file claims within two years of the clients’ deaths, which is the industry-wide deadline. 

Four out of 100 South Koreans subscribed to life insurance policies died from suicides, the biggest cause of death for those in their teens to 30s, an institute's tally showed Tuesday.

AIA Agent Sold Fake Policy

A former agent of pan-Asian life insurance company AIA pleaded guilty for the second time on Thursday to defrauding an elderly couple of more than $5m after withdrawing her earlier plea.

Sally Low Ai Ming sold a fake insurance product, called the AIA Thank You policy, to Ong Han Ling and his wife in 2002. Low then used part of the money to buy insurance policies for the couple without their knowledge or consent.

Second guilty plea
She pleaded guilty on Thursday to five of the 21 charges, specifically three counts of cheating, one count of using a forged document, and one count of removing more than S$5m from Singapore’s jurisdiction.

In a long running and complex trial, Low also faces charges for attempting suicide in 2012 and stealing gooseberries. Low previously pleaded guilty in December 2013 but retracted her plea six months later. If convicted she could be jailed up to seven years and fined.

Low had admitted herself to the Institute of Mental Health for assessment but was certified fit to stand trial. During the protracted legal battle, Low’s legal team has changed six times, with her fifth set of lawyers stepping aside at the end of April 2016.

Low is understood have been made bankrupt by the proceedings.

Computer glitches
In January 2005, Low claimed that due to a computer glitch, Ong’s name had been mistakenly used to purchase a policy valued at S$5m. She informed her client that this policy had since generated revenue of almost S$888,000.

Low told Ong that if he paid AIA the sum of S$5m, he could keep the profit. Ong duly issued a cheque for S$5m to Low. She then moved the money to Hong Kong, transferring the sum into an American Express account under the name of a company registered in the British Virgin Islands, which was later found to be owned by Low.

In September 2006, Low again defrauded Ong and his wife saying that there had been another glitch in AIA’s computer systems, this time getting the couple to hand over $1m.

No such policy
The court heard that the deception came to light around 2008, at the time of maturity of the fake 2002 policy, when Ong contacted AIA directly to enquire about reinvesting its returns.
AIA informed him no such policy existed.


Tangled web
Mr and Mrs Ong are in the process of suing AIA for negligence and lack of care. They claim that AIA and its subsidiary Motion Insurance Agency, for whom Low worked, failed to identify numerous irregularities in their application process.

However, AIA has alleged that the couple are part of a conspiracy with Low to defraud AIA. It is understood that AIA has asked Low to be a witness in the company’s defence.

Siam Commercial Bank

Siam Commercial Bank (SCB), Thailand's No.3 lender, is close to hiring Morgan Stanley to advise on a potential sale of a significant stake in its life insurance unit, sources said.

A second investment bank is also likely to be brought in when the sale process kicks off, the people said, speaking on condition of anonymity as the information was not public.

Some bankers and analysts say that the entire SCB business - SCB Life Assurance Public Co - could fetch around US$2 billion, based on a multiple of 2-2.5 times its embedded value of more than 30.42 billion baht (US$865 million) at the end of 2013.

Embedded value, a widely used measure in the insurance industry, values companies based on future earnings from current policies.

SCB is seeking a partner for its insurance business in a move to accelerate growth in the business. It was not immediately clear how much of the business SCB will sell, nor what it planned to do with the proceeds.

Previous discussions on a possible sale have centred on a divestment of at least 25%.

The deal would also involve a bank distribution agreement, allowing the new partner to sell insurance products through SCB's branch network.