Kurnia Group
Kurnia Asia Records 1Q Pretax Profit of Rm21.3 Million as Underwriting Performance
Improves
25 May 2011
Petaling Jaya, 25 May 2011 – Kurnia Asia Berhad (KAB or the Group) released
its unaudited financial results for the first quarter ended 31 March 2011(Q1
FY2011) at its corporate head office in Menara Kurnia.
KAB’s gross written premiums increased by 6.1% to RM270.3 million for
the Q1 FY2011 as compared to the corresponding quarter. The increase in gross
written premium was mainly driven by the growth in non-motor business, which
expanded by an impressive 22.3% quarter-on-quarter and 16.2% year-on-year.
The non-motor growth was mainly attributable to its main subsidiary, Kurnia
Insurans (Malaysia) Berhad (KIMB). As at Q1 FY2011, the Group’s non-motor
business accounted for 24% of its overall business portfolio while KIMB’s
non-motor contribution increased to 22% of its overall business portfolio.
The Group recorded a higher pre-tax profit of RM21.3 million for Q1 FY2011
compared to the last preceding quarter’s pre-tax loss of RM9.0 million,
attributable to better underwriting results.
KAB’s Executive Chairman, Tan Sri Dato’ Paduka Kua Sian Kooi,
said: “We are pleased to see the consistently strong growth in our non-motor
business. KIMB itself had recorded a 26% growth in non-motor business from
the preceding quarter and an 18% growth from the previous quarter last year.
In addition to this, we have been able to produce better underwriting results
due to our stringent risk selection: a reduction of 40% in third party motor
policies and an increase of 3.2% in comprehensive motor policies compared to
previous corresponding quarter.”
In line with KIMB’s non-motor business expansion plans, it recently
launched a new medical product called Mediguard Supreme. Mediguard Supreme
is an enhanced comprehensive medical insurance protection for policyholders
and has received encouraging response. The Malaysian medical and health insurance
sector is expected to sustain strong growth, driven by upward trends in consumer
awareness coupled with an increasing need for cover against escalating healthcare
costs. The introduction of the health insurance plan designated for foreign
workers will also bode well and drive growth for KIMB’s foreign workers
insurance products.
The General Insurance Association of Malaysia (PIAM) foresees the outlook
for the general insurance industry this year to be positive with an increased
demand for insurance products and services. In addition with new parliamentary
initiatives such as the New Economic Model, the Economic Transformation Program
and the Tenth Malaysian Plan, this will lead to a growth in demand for insurance
products and services. In addition, Bank Negara Malaysia has recently introduced
the New Motor Policy Framework, which bodes well for KIMB, as being the largest
motor insurer in the market, where the revised tariff structure is expected
to improve profitability. Hence barring unforeseen circumstances, the Group
anticipates a satisfactory and consistent financial performance for the year.