Insurance trend on play

We have seen many ups and down in certain industry. As for last year, i have shown some prediction for the 2012 shares and this year one of the headline will be the insurance industry.

Over the last two years, the local industry saw an increase in the number of foreign insurers acquiring stakes in local insurance companies, such as Japan's Mitsui Sumitomo Insurance in HL Assurance, Zurich Insurance company in MAA.

Thus, in 2013 the domestic and golbal insurers will benefit from the region's organic premium growth potential brought by increasing insurance penetration. Fitch Ratings has a stable outlook rating for Malaysia's life and non-life insurance and takaful segments for the next 12 to 24 months.As you can see recent months saw the share prices of stocks like Alllianz being chased higher, partly on speculation of M&A involvement and partly due to good growth prospect. 

I understand many of you are afraid and pessimistic about the general election that will be on going somewhere march or mid of the year. However i have an old saying advice, if u are running now, keep running and hoard more cash.(waiting for the opportunity) On the other hand, if u are holding quite a number of shares, and you are very confident Barisan national will win the general election, go ahead and keep your shares and once barisan nasional win the election, that's your big ang pao.

However, for the insurance industry player, there will be plenty of opportunity out there for everyone. No matter, market are heading south or north, everyone need insurance, like general insurance, life insurance, health insurance, gap insurance and so on so forth. The reason i opine that this topic will be one of the hottest topic because i believe that Merger and Acquisition of insurance company will continue in the near future. The reason is because small insurance company are trying to strive in order to compete, thus they will have to merge with a bigger company to compete and this is where foreign company like Zurich Insurance and Ace Ina international insurance company (US),etc come to play.

I have no say or neither do i have any information on which company will come into play but however, this is just a prediction and estimation on what will be happening to malaysia insurance company in the next 1 or 2 year.
One of my top pick will be MAA and Syarikat takaful and P & O bhd. I will come back to that later.

Thanks,
VC