Reference No O&-080124-63840
|Submitting Merchant Bank
||KENANGA INVESTMENT BANK BERHAD
||REXIT BERHAD (MESDAQ Market)
||REXIT BERHAD (“REXIT” OR “COMPANY”)
REXIT SOFTWARE SDN BHD, WHOLLY-OWNED SUBSIDIARY OF REXIT, SIGNS AGREEMENTS WITH 14 LIFE INSURANCE COMPANIES TO PROVIDE e-COVER SERVICES
We refer to the announcement made on 13 July 2007 in relation to the letter of intent from the Life Insurance Association of Malaysia ("LIAM") on the selection of Rexit as the vendor to develop and implement an information technology (“IT”) system for on-line transactions.
On behalf of the Company, Kenanga Investment Bank Berhad (“Kenanga”) is pleased to announce that LIAM has appointed Rexit’s wholly-owned subsidiary, Rexit Software Sdn Bhd (“Rexit Software”) to provide e-Critical Illness System to enable LIAM members to provide critical illness insurance scheme for contributors to the Employers Provident Fund (“EPF”) and their dependents via Rexit’s e-Cover portal.
Rexit Software’s appointment by LIAM will represent the Company’s first delivery of IT solutions and services to the local life insurance market, and will provide the platform for Rexit to explore further business opportunities within this market segment.
In connection with this appointment, Rexit Software has to-date entered into the e-Critical Illness Subscription Agreements with each LIAM member (“Agreement”), comprising of licensed life insurance companies as follows:
(i) Allianz Life Insurance Malaysia Berhad
(ii) AmAssurance Berhad
(iii) American International Assurance Company, Limited
(iv) AXA AFFIN Life Insurance Berhad
(v) CIMB Aviva Assurance Berhad
(vi) Etiqa Insurance Berhad
(vii) Great Eastern Life Assurance (Malaysia) Berhad
(viii) Hong Leong Assurance Berhad
(ix) Malaysian Assurance Alliance Berhad
(x) Mayban Life Assurance Berhad
(xi) MCIS ZURICH Insurance Berhad
(xii) Prudential Assurance Malaysia Berhad
(xiii) TM Asia Life Malaysia Bhd
(xiv) Uni. Asia Life Assurance Berhad
1. Details of the Agreement
(a) LIAM, in collaboration with the EPF, have agreed that LIAM members will provide critical illness insurance scheme for contributors to the EPF and their dependents whereby the initial insurance cover for each contract will be for a period of five (5) years and renewable for periods of five (5) years thereafter, subject to underwriting guidelines of LIAM’s members (“CI Insurance Scheme”).
(b) LIAM, being the association representing licensed life insurance companies in Malaysia, in operating the CI Insurance Scheme, has appointed Rexit Software to provide the e-Critical Illness Solution (“e-CIS”) on an Application Service Provider (“ASP”) basis, which will be subscribed and used by all participating LIAM members to record, register, process, approve, reject and/or capture all applications and claims in respect of the CI Insurance Scheme as well as the storage of details in respect of such applications or claims at the agreed fees and terms as specified in the Agreement.
(c) The initial term of the Agreement is for a period of 12 months and deemed automatically renewed at the expiration of the term for another period of 12 months. Notwithstanding that, Rexit Software shall provide the e-CIS Services for so long as the CI Insurance Scheme is in place and sanctioned by EPF until such time that EPF declares the end of the CI Insurance Scheme or LIAM, on behalf of its members shall withdraw from the CI Insurance Scheme or until the Agreement is terminated in accordance with the provisions of the Agreement, whichever is earlier.
2. Effects of the Agreement
The Agreement does not have any effect on the share capital and substantial shareholders’ shareholdings of the Company. The Agreement is expected to enhance the revenue of the Company and consequently contribute positively to the earnings and net assets of the Company for the future financial years.
3. Directors and/or substantial shareholders’ interests
None of the Directors and/or substantial shareholders and/or persons connected to the Directors and/or substantial shareholders of Rexit has any interest, direct and indirect in the said Agreement.
This announcement is dated 24 January 2008.
© 2008, Bursa Malaysia Berhad. All Rights Reserved.