Kurnia Group
Kurnia first-quarter net profit drops to RM24m
THE STAR - Thursday, November 9th, 2006
PETALING JAYA: General insurer Kurnia Asia Bhd's net profit for the first quarter ended Sept 30 fell 36% to RM23.76mil against RM37.19mil made in the previous corresponding period.
The decline in earnings was mainly attributed to lower underwriting surplus recorded during the period, despite a 1.7% increase in gross premium income to RM266mil against RM262mil previously.
The group said its claim ratio had weakened to 65.2% from 61.2% a year earlier. Management expense had also increased year-on-year as the company expanded head count in its non-motor division.
On a positive note, investments and other income improved 28% to RM21.8mil, propelled by the Kuala Lumpur Composite Index's 5.8% rise during the quarter under review.
Kurnia Asia also announced yesterday that it had entered into an agreement to acquire an 80% stake in PT Asuransi Aegis Indonesia for RM17.08mil. The proposed acquisition represents an opportunity for the company to gain access to Indonesia's general insurance market and was expected to "enhance the value of the group and contribute to its profitability in the near future."