Kurnia Group
Kurnia Asia posts RM32.2m net profit in 3Q
THE EDGE FINANCIAL DAILY - Friday, October 30th, 2009
By JOSEPH CHIN
KUALA LUMPUR: KURNIA ASIA BHD posted a net profit of RM32.3 million in the three
months to Sept 30 compared with a net loss of RM12.1 million a year ago due to a
turnaround in its investment portfolio and improved underwriting performance.
The insurer said on Thursday, Oct 29 that revenue declined 16.2% to RM254.96 million
from RM304.49 million. Earnings per share were 2.16 sen compared with loss per share
of 0.81 sen. However, the third quarter earnings were below the RM42.65 million
in the previous quarter ended June 30, 2009. The group has changed its financial
year end from June 30 to Dec 31.
Executive chairman Tan Sri Kua Kian Kooi said the operating environment was increasingly
competitive but the group managed to record positive underwriting performance for
five consecutive quarters.
He said the internal on-going transformation and revitalisation programme had resulted
in an improvement in underwriting results on-year.
The group recorded net investment and other income of RM34.02 million for the period
under review, compared to net investment loss of RM7.988 million last year.
The improvement was mainly due to the recovery of equity market that allowed some
write-back of mark-to-market losses provided previously.
On the underwriting end, the group's gross premium declined year-on-year by 18.1%
to RM231.31 million from RM282.55 million due to its more stringent risk selection
practice.
The improvement was mainly due to the recovery of equity market that allowed some
write-back of mark-to-market losses provided previously.
On the underwriting end, the group's gross premium declined year-on-year by 18.1%
to RM231.31 million from RM282.55 million due to its more stringent risk selection
practice.
"Besides the underwriting surplus and positive net investment result, the group
recorded a reduction in its management expenses of RM10.87 million from Sept 30,
2008 and RM22.8 million from last quarter," he said.