Kurnia Group
Kurnia Asia achieves a turnaround
BUSINESS TIMES - Friday, November 28th, 2008
KURNIA Asia Bhd has achieved a turnaround in underwriting performance with
a surplus of RM2.67 million for its first quarter of financial year 2009, after
four immediate preceding quarters of consolidated underwriting deficit.
In a statement yesterday, the group attributed the turnaround to a more proactive
risk selection strategy as well as to strengthened claims management practices
implemented through its Transformation of Operations and Performance (TOP).
“We have successfully turned around our underwriting performance for
the first quarter of our new financial year,” said Kurnia Asia executive
chairman Tan Sri Kua Sian Kooi.
“It’s a good start to our new financial year and we are back on
the right track as a result of strategic business and operational measures
put in place,” he said.
For the current quarter under review, the group’s claims expenses was
reduced by 10 percent to RM172.87 million compared with the first quarter of
the previous financial year.
As such the group’s claims ratio has improved to 68 per cent compared
to 75.4 per cent in the previous quarter, Kurnia Asia said.
The group also registered an improvement in its top-line, whereby gross premium
income improved by 5.2 per cent to RM282.55 million for the first quarter,
up from RM268.52 million in the same quarter of the preceding year.
“However, the group’s improved top-line and underwriting performance
were weighed down by our invesment results,” Kua said.
“Though a net loss of RM12.11 million was incurred mainly due to the
unfavourable stock market condition, we have taken steps to review our asset
allocation in our investment portfolio and have adopted a defensive stance
in view of the uncertain market outlook,” he said.
“While our presence in the motor sector will continue to be an important
business segment for Kurnia Insurans (Malaysia) Bhd, we are also strategically
refocusing our priorities on the motor sector to achieve a 15 per cent non-motor
portfolio mix, up from 12 per cent last year,” he added. — Bernama