Kurnia Group
Kurnia's 9M net profit up 11 times
MALAYSIAN RESERVE - Friday, May 8th, 2009
By Lee Cherng Wee
KURNIA Asia Bhd’s net profit for the nine months ended March 31, 2009
jumped 11 times to RM14.4 million from RM1.3 million in the corresponding period
last year. This was despite a 2.5% drop in revenue to RM873.06 million from
RM895.05 million in the same period previously.
In an announcement yesterday, Kurnia said the significant improvement resulted
mainly from the positive underwriting performance as well as a stronger investment
performance.
During the three quarters, it achieved total underwriting surplus of RM12.53
million compared to a deficit of RM78.04 million in the corresponding period
last year.
Kurnia’s claims ratio during the nine months has also improved to 68.8%
from 78.9% previously.
Its claims expenses were reduced by 14.7% to RM514.3
million from RM604.1 million in the same period a year ago.
For the 3Q ended March 31, 2009, Kurnia returned to the black with a net profit
of RM26.39 million versus a net loss of RM25.42 million in the same quarter
last year.
Quarterly revenue declined 7.1% to RM280.62 million from RM301.99 million
previously.
“Investment income improved to RM29.58 million for the 3Q from RM2.67
million achieved in the previous quarter due to the group’s decision
to reallocate the investment portfolio to a more defensive position in view
of the poor showing of the equity market,” said Kurnia.