Kurnia Group
Kurnia Asia nets RM26m in 3Q
THE EDGE DAILY - Friday, May 8th, 2009
KUALA LUMPUR: Kurnia Asia Bhd's (KAB) net profit jumped to RM26.39 million
in the third quarter ended March 31, 2009 (3Q09) from a net loss of RM25.42
million a year earlier, even as revenue fell 7.1% to RM280.62 million from
RM301.99 million.
Earnings per share improved to 1.77 sen from a loss per share of 1.71 sen.
The company said the improvement was mainly contributed by its unit Kurnia
Insurans (Malaysia) Bhd (KIMB).
For its first nine months, KAB's net profit soared to RM14.4 million from
RM1.3 million last year.
The improved net profit was largely attributed to its sustained positive underwriting
performance as well as a stronger investment performance, the company said
in a statement yesterday.
The group recorded an underwriting surplus of RM4.12 million for 3Q09 compared
to a surplus of RM5.73 million in the preceding quarter.
"The internal transformation and revitalisation Transformation of Operations
and Performance (TOP) programme has indeed helped bring the group's underwriting
results back on track," it said.
The group's claims ratio in the nine-month period improved to 68.8% from 78.9%
previously with its strengthened claims management through TOP, it said. Claims
expenses fell 14.7% to RM514.3 million from RM604.1 million.
"Amidst such a challenging environment, the group has achieved much by
turning around its operations. Nonetheless, there is still room for improvement
and we will continue to innovate and change to achieve sustainable profitable
growth," KAB executive chairman Tan Sri Kua Sian Kooi said.
KAB noted that investment income improved to RM29.58 million in 3Q09 from
RM2.67 million in 2Q09 due to the decision to re-allocate the investment portfolio
to a more defensive position in view of the poor showing of the equity market.
While enhancing its motor portfolio quality and services, KAB was also expanding
its non-motor contribution. For the nine-month period, non-motor contribution
to gross premium was about 17% versus 13% previously.
"As we enter into the last quarter of our financial year ending June
30, 2009, we are determined to achieve an even healthier performance. Looking
beyond the current financial year, we have already identified key initiatives
for strategic growth in our next financial year," Kua said.