Kurnia Group
Kurnia plans RM400mil capital injection
THE STAR - Tuesday, October 7th, 2008
By DALJIT DHESI
PETALING JAYA: Kurnia Asia Bhd, which incurred a group net loss of RM301.79mil
for the financial year ended June 30, has announced a RM400mil capital injection
to strengthen its paid-up capital to RM600mil.
In a statement, executive chairman Tan Sri Kua Sian Kooi said: “With
the additional capital injection, we are very well positioned and confident
of the future.
“Our key aspiration is to further fortify our domestic operations and
network. We will also strive to enhance our commitment to our shareholders,
policy holders, agents as well as other key stakeholders. Another critical
direction is to grow and build our business through strategic expansion.”
On its expansion plans, Kua in an e-mail reply to StarBiz said: “In
line with Kurnia Asia’s aspiration to become a leading regional financial
services provider, we have acquired PT Kurnia Insurance Indonesia, a mid-size
general insurer. We have plans to acquire Kurnia Insurance Thailand Co Ltd.
“And Kurnia Asia has also teamed up with Canadia Investment Holdings
Plc to form a joint-venture company in Cambodia to undertake general and life
insurance businesses.”
The company also released its unaudited financial results for the fourth quarter
and full year ended June 30 (FY08).
The group’s gross premium income for FY08 improved marginally by 1.1%
to RM1.12bil from RM1.11bil in FY07.
Amid the flattish growth in its gross premium, the group recorded a net loss
of RM301.79mil (from a net profit of RM2.53mil in FY07) mainly due to the management’s
effort in strengthening claims reserving as well as complying with Risk Based
Capital framework on claims reserving at 75% confidence level, ahead of the
same coming into effect from Jan 1, 2009.
This, in turn, resulted in the increase in technical reserves to RM1.88bil,
representing a technical reserve on net premium written ratio of 186%, the
highest reserve in the market.
Another factor that weighed down the group’s financial performance was
the significantly reduced total investment income to RM93.17mil (FY07: RM182mil)
due to poor stock market performance.
For the fourth quarter, net loss stood at RM303.09mil compared with a loss
of RM90.87mil in the previous corresponding period.
For the full year, it recorded a basic loss per share of 20.26 sen as against
an earnings per share of 0.17 sen.
“Despite the reported results and the current market volatility, Kurnia
is fully committed to Malaysia and the insurance business for the long term,” Kua
said.