HONG LEONG ASSURANCE VS

HSBC AMANAH TAKAFUL MALAYSIA

Bi
l
1
2
3
4
5

Name

Matric No.

Mohd Haiqal Bin Abu Bakar

Phiqree Adzwan Patrick Mindot
Muhammad Sayyidi Bin Hamzah
Muhammad Fakhirin Bin Rosli
Mohd Norshukri Bin Omar Ali

BG12110293
BG12110443
BG12110307
BG12110314
BG12110300

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 Groups international experience and
expertise in Islamic Finance for developing
offering Takaful solutions to Malaysian consumers.

FINANCIAL RATIO (LIQUIDITY)

Formulas

Hong Leong
Assurance

HSBC 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+In

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

=93451+951,353/149,
561

PROFITABILITY RATIO
Formulas

Hong Leong
Assurance

HSBC 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%

EFFICIENCY
Formulas

Hong Leong
Assurance

HSBC Amanah Takaful

Asset Turnover
= Revenue/(Total
Asset)

Asset Turnover
=1,935,100/10,143,74
6
= 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)

=
= 1,071,349/1,174,103
7,252,668/10,143,746 = 0.912
= 0.72

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

Protection
and wealth
A retirement
Affordable
plan
accumulation

affordabl
e

Complex
mechanis
m

Benefi
ts

Easy and
flexible

Almost
everyone
can
qualify

Protection
coverage

Death

Total and
Permanent
Disability

Critical
Illness

Old Age
Disablemen
t

Personal
Accident

Other
protection

Hospital
and Surgical

Critical
Illness
Waiver of
Premium

Spouse/Pay
er Waiver of
Premium

Allocation Rates of
Premium
Policy
year

7
onw
ards

Premiums 1,00 1,00 1,00 1,00 1,00 1,00

1,000
paid (RM)
0
0
0
0
0
0
(%)

40

Premiu
m
allocat
RM 400
ion

40

75

75

85

400

750

750

850

85

100

850 1000

PERFORMANCE OF INSURANCE INDUSTRY IN

MALAYSIA

of
Premium
Participan
Premium Particip
Premiu
Year Income
Incomeants
ts
% of GN
% of
Year
m
(RM
Million)
(Million)
(RM
(Million
GNI
Income
19,831.3 )
2009 Million)
11.6
3.0
(%)
2009
2010

19,831.3
21,804.7 11.6

3.0
12.0

- 2.9

2010
2011

21,804.7
22,815.8 12.0

2.9
12.3

9.95
2.7

2011
2012
2012
2013
2013

22,815.8
12.3
24,929.0

2.7
12.7
2.8
13.3
2.8

4.64
2.8
9.26
2.8
5.78

24,929.0
12.7
26,369.1
26,369.1
13.3

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