News Digest 20100309-20100320

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News Digest 20100106-20100113

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News Digest 20091116-20100106

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Kurnia's Q1 results

Highlights of Kurnia Asia's Q1 results (July - September 2009 vs July - September 2008):

• Profit (RM): 32.2 mil vs -12.1 mil (mainly due to investment performance)
• Net investment & other income (RM): 34 mil vs -8 mil (mainly write-back of mark-to-market losses)
• Revenue (RM): 255 mil vs 304 mil (more stringent risk selection practice)
• Underwriting surplus (RM): 3.68 mil vs 2.67 mil

Note: There is a change of financial year to 31 December from 30 June.

Source: Bursa, The Star, The Edge, Business Times

Kurnia sets expense ratio target

Kurnia has set an expense ratio target of 15% and it wants to achieve it within 3 years. Its current expense ratio is 23.1%.

Source: Business Times

Kurnia's 2009 Q3 Results

Kurnia released its Q3 results for FY2009. Some highlights:

3 quarters cumulative figures, 2009 vs 2008

• Revenue: RM873 mil vs RM895 mil
• Profit before tax: RM14.5 mil vs RM5.5 mil
• Underwriting surplus: RM12.5 mil vs (RM78.0 mil)

Q3 2009 vs Q3 2008

• Revenue: RM280 mil vs RM302 mil
• Profit before tax: RM26.4 mil vs (RM25.4 mil)
• Underwriting surplus: RM4.1 mil vs (RM48.0 mil)

Source: Bursa Malaysia

Kurnia defers Cambodian venture

Kurnia has decided to defer its venture into Cambodia given the current financial crisis.

Source: Business Times

Kurnia's 2009 Q1 Results

Kurnia reported a mixed 2009 Q1 (30/9/2008) results, while the overall results have deteriorated, the underwriting performance has improved. Below are the 2009 Q1 vs 2008 Q1 figures:

• GI Revenue: RM304.5 mil vs RM290.2 mil
• Motor gross premium: RM236.2 mil vs RM238.2 mil
• Miscellaneous gross premium: RM31.7 mil vs RM18.1 mil
• Profit: -RM12.1 mil vs RM14.4 mil
• Underwriting surplus: RM2.7 mil vs -RM323.7 mil (2008 Q4)
• Investment activities: -RM8.0 mil vs RM34.9 mil
• Claims ratio: 68.0% vs 75.4%

Source: Bursa Malaysia

Kurnia to reduce reliance on motor insurance

Kurnia targets to reduce its reliance on motor insurance business. Motor insurance business currently contributes 84% of it gross premium income, the target is to reduce it to 50%.

Yesterday, Kurnia also re-launched its enhanced Kurnia Auto Assist (roadside breakdown repair, 30 minutes arrival at scene) and Kurnia Express (immediate settlement of claims of comprehensive motor policyholders up to RM3,000).

Source: Business Times

Kurnia's RM400 mil Capital Injection

Kurnia plans to inject RM400 mil capital to strengthen its paid-up capital to RM600 mil.

On regional expansion, Kurnia has acquired PT Kurnia Insurance Indonesia (mid-size general insurer), and plans to acquire Kurnia Insurance Thailand Co Ltd. There is also a joint-venture in Cambodia undertaking general and life insurance businesses.

Unaudited financial results for FY2008 ending 30 June:

• Net loss of RM301.8 mil (FY2008) vs net profit of RM2.5 mil (FY2007)
• Loss per share 20.26 sen (FY2008) vs earnings per share 0.17 sen (FY2007)
• Gross premium income: RM1.12 bil (FY2008) vs RM1.11 bil (FY2007)
• Increase in technical reserves to RM1.88 bil to comply with RBC requirements
• Investment income: RM93.2 mil (FY2008) vs RM182 mil (FY2007)
  

5 critical pillars of transformation to enhance productivity and profitability:

• Organisation leadership
• Growth in non-motor sectors
• Distribution
• Underwriting
• Claims

Source: The Star, Business Times

Inflation will Affect Motor Insurance Business

The recent fuel price hike and the high inflationary environment is expected to have negative impact on the motor insurance business. The demand for vehicles, especially the large capacity vehicles, will likely to be depressed. The motor insurance premium growth is expected to be affected as a result.

The gross written motor insurance premiums reached RM4.67 bil in 2007, a growth of 1.4% over 2006.

Kurnia expects that inflation will also put pressure on management expense. The slowdown in vehicle sales however may be temporary as cars are still a neccessity for Malaysians.

Source: Business Times

Kurnia's New CEO

Captain K.H. Chia is now the new CEO of Kurnia Insurance. Capt. Chia is well known in the insurance industry, he served as Hong Leong Assurance's CEO before moving to Prudential in China. Captain is also 1 of the past presidents of LIAM.

Source: Business Times

Kurnia to Acquire KIT

Kurnia Asia Bhd ("KAB") is to acquire 18.9% of Kurnia Insurance (Thailand) Company Limited ("KIT") for a total cash consideration of Baht 75.6 mil. In addition, KAB will subscribe for 8 mil KIT new shares for Baht 80 mil, bringing its total holdings to 26.27% of the enlarged share capital.

KIT is involved in underwriting of non-life insurance in Thailand. It has 4 branches, 1 service centre, over 300 panel garages and more than 200 employees. Motor segment is a large proportion of KIT's business.

Source: Bursa Malaysia

Kurnia Goes Cambodia

Kurnia is venturing into Cambodia's life and general markets with joint venture partner Canadia Investment Holding Plc (CIHP). The joint venture company is called Cana Kurnia Insurance Plc.

Kurnia will own 49% of Cana Kurnia. CIHP owns the largest bank in Cambodia called Canadia Bank Plc.

Source: Bursa Malaysia