Kurnia Group
Kurnia Asia Achieved Stronger Net Profit For Q3 Ended 31 March 2009
May 7th, 2009
Petaling Jaya, 7 May 2009 – Kurnia Asia Berhad (KAB) released its unaudited
financial results for the third quarter (Q3) of the financial year ending 30
June 2009 (FY2008/09) at its corporate head office in Menara Kurnia.
KAB has improved its net profit to RM14.39 million for the 9-month period
ended 31 March 2009 as opposed to RM1.30 million for the corresponding period
ended last year. The improved net profit is largely attributed to its sustained
positive underwriting performance to date for FY2008/09 as well as a stronger
investment performance achieved during the quarter under review.
Moving into the second half of FY2008/09, KAB maintained its positive underwriting
performance for three consecutive quarters for the current financial year under
review. The Group recorded an underwriting surplus of RM4.12 million for Q3
FY2008/09, compared to an underwriting surplus of RM5.73 million in the second
quarter of the same financial year. Hence, for the 9-month period ended 31
March 2009, KAB achieved a total underwriting surplus of RM12.53 million, a
significant turnaround from an underwriting deficit of RM78.04 million incurred
in the corresponding period of the previous financial year. The internal transformation
and revitalization Transformation of Operations and Performance (TOP) program
has indeed helped bring the Group’s underwriting results back on track.
For the 9-month period ended 31 March 2009, the Group’s claims ratio
has also improved to 68.8% from 78.9% correspondingly with its strengthened
claims management through TOP. The Group’s claims expenses reduced by
14.7% to RM514.3 million from RM604.1 million for the same period in the previous
financial year.
KAB’s Executive Chairman, Tan Sri Dato’ Paduka Kua Sian Kooi,
commented: “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.”
Investment income improved to RM29.58 million for Q3 FY2008/09 from RM2.67
million achieved in the previous quarter of the current financial year 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. The Group
will closely monitor and prudently manage its investment asset allocation to
minimize as much as possible the impact of the global financial crisis on the
Group’s business.
On its top line, the Group’s gross premium has remained flattish due
to the more stringent risk selection process to attract quality business. Gross
premium totaled RM806.6 million for the 9-month period ended 31 March 2009,
a slight dip from RM832.0 million achieved in the corresponding period in the
previous financial year.
In a continuous effort to enhance its services to its valued policyholders,
Kurnia Insurans (Malaysia) Berhad (KIMB) has launched new services such as
Kurnia Auto Assist (KAA) motorcycle riders, enhanced Kurnia Express (KE) and
SMS alerts on claims update and renewal reminders among others. While enhancing
its motor portfolio quality and services, it is also expanding its non-motor
contribution. For the 9-month period ended 31 March 2009, non-motor contribution
to gross premium is approximately 17% at the Group level, compared to 13% for
the same period in the previous financial year.
“As we enter into the last quarter of our financial year ending 30 June
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,” concluded Tan Sri Kua.