BT Featured Stock >>> 5097 KURNIA ASIA BERHAD

Kurnia Asia Berhad (KAB) was incorporated in Malaysia on 16 February 2001 as a private limited company under the name of Kurnia Asia Sdn Bhd. On 21 November 2002, the Company converted into a public limited company and assumed its present name.

KAB is the holding company which wholly owns Kurnia Insurans (Malaysia) Berhad (KIMB)- the largest general insurer in Malaysia. Since its inception, Kurnia has been growing tremendously and delivering outstanding operational results and profitability under the leadership of its hands-on and experienced management team.

Kurnia Asia Achieved Stronger Net Profit For Q3 Ended 31 March 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.