The defence team of former top agency manager Peter Tan Shou Yi are questioning the estimates of future profits lost by Prudential when 244 of its agents left the firm, allegedly poached by Tan for rival Aviva.
Prudential's claims for compensation include projections for the profits that would have been made by the agents who left. According to estimates, its losses in profits to be around S$300m if the agents had stayed for ten years; and if they stayed in perpetuity, the losses would amount to S$2.5bn.
Referring to a media report of underwriting losses recorded by Prudential in 2015 and 2016, senior counsel Thio Shen Yi from TSMP Law asked how these losses squared with future profitability estimates made by Prudential's expert witness Larry Rubin, The Strait Times reports.
Shen Yi cited a 2017 report in The Business Times that Prudential recorded underwriting losses on integrated shield plans (IP) in 2015 and 2016. He asked witness Tan Eng Chuan if it was surprising that Rubin estimated a new business profit (NBP) margin of over 200% for Prudential's IP product PRUshield, given the reported losses.
The witness, formerly of Prudential's finance management performance team, said the question was beyond his technical expertise.
Tan is being sued by Prudential for allegedly instigating the defection of 221 agents and 23 agency leaders at his agency, Peter Tan Organisation, to rival insurer Aviva's subsidiary Aviva Financial Advisers in mid-2016.