Kurnia Group
KURNIA ASIA’S FIRST HALF 2011 NET PROFIT JUMPS 8.3% TO RM29.3 MILLION
16 Aug 2011
Petaling Jaya, 16 August 2011 – Kurnia Asia Berhad (KAB or the Group) released its
unaudited financial results for the second quarter ended 30 June 2011(Q2 FY2011) at its
corporate head office in Menara Kurnia.
KAB’s gross written premiums increased by 1.5% year-on-year (y-o-y) to RM531.8 million for the first
half of the FY2011, driven by a 16% y-o-y growth in the Group’s non-motor business segment. KAB’s main subsidiary,
Kurnia Insurans (Malaysia) Berhad (KIMB) currently has a 21% non-motor contribution to the Group’s overall business
portfolio, up from 18% a year ago. KIMB’s non-motor business segment alone expanded by 18.5% y-o-y to reach RM109.5
million for the period under review.
The Group recorded a higher net profit of RM29.3 million for the 1H of FY2011, up 8.3%, mainly attributable to the
improved investment and underwriting performances. KIMB’s underwriting profit for the 1H amounted to RM10.2 million
against RM6.7 million in the previous year. KIMB’s underwriting performance was commendable as total net claims incurred
declined by RM9.7 million y-o-y while total management expenses and net commissions too fell by RM5.2 million and RM20.9
million y-o-y respectively. KIMB’s underwriting performance for the 1H period was mainly impacted by a lower net earned
premium, which fell by RM38.1 million.
Meanwhile, KIMB’s investment income for 1 of FY2011 stood at RM52.1 million, up 2.9% y-o-y. The prudent and defensive
nature of the investment portfolio continued to be driving force for sustained income contribution. Net investment yield
for the 1H period stood at 5.7% against 5.4% in the previous 1H period. Also, as KIMB carried out a Loss Portfolio
Transfer exercise towards the end of 2Q of FY2011, the one-time cost associated with the exercise too impacted the
overall net profit for the period under review.
Additionally, the net asset value of the Group of RM390.9 million was an improvement of 19.3% when compared to the
net asset value for 31 December 2010 of RM327.8 million. The increase was due to the surplus on revaluation of properties
amounting to RM30.7 million as well as RM29.3 million net profit recorded for 1H of FY2011.
KAB’s Executive Chairman, Tan Sri Dato’ Paduka Kua Sian Kooi, said: “We are delighted with our 1H of 2011 performance
as our efforts to streamline our business operations and to drive our non-motor growth is showing the desired results.
On top of that we are also pleased to see on an absolute basis, key elements of our cost structure are showing positive
trends with net claims incurred and management expense trending lower”. Tan Sri Dato’ Paduka Kua further reiterated,
“Although we have received expressions of interests from certain parties to explore the possibility of acquiring an equity
interest in KIMB, the group’s strategy to grow its business, specifically in the
non-motor segment and comprehensive motor business, remains on track”