Kurnia: Non-motor segment, new services to boost revenue


  • Business
  • Thursday, 02 Sep 2004

BY NELSON BENJAMIN IN GUILIN

KURNIA Insurans (M) Bhd, the country’s largest insurer in terms of gross premiums, expects better growth in its non-motor segment and introduction of new services to help it hit RM1.3bil revenue in the financial year ending June 30, 2005. 

Its newly appointed chief executive officer Kong Shu Yin said the 23% increase in revenue was achievable, especially with greater growth in demand for insurance for fire, maritime, personal accident and miscellaneous accident indemnities. 

“We are also coming up with more innovative services to serve our three million clients nationwide,” he said, adding that the company’s Kurnia Auto Assist and Kurnia Express were well received. 

“Developing the non-motor segment and other services does not mean the company is shifting from its core business of motor insurance,” Kong said, adding that non-motor segment contributed RM96mil to the company's total earnings of RM1.06bil in fiscal 2004. 

He hoped the contribution from the non-motor segment would increase to RM130mil this year. 

On the projected 23% increase in revenue, Kong said the company was “on track” as Kurnia had set specific sales targets each month. 

“The target can vary as car sales are not always the same each month,” he said, adding that motor sales tended to rise during festivals. 

On economic uncertainties due to high crude oil prices, Kong said this would not affect the company and furthermore the country’s economic fundamentals were still strong. 

On competition from foreign firms, he said, Kurnia had been already competing with such companies over the past few years. 

“Foreign competition is not something new to us,” Kong said, adding that the company was moving as scheduled towards listing on Bursa Malaysia main board by November. 

Kong was speaking to reporters during a six-day company trip to Guilin, China, for Kurnia staff who helped the company hit RM1.06bil in collected premiums in fiscal 2004. 

“Passing the RM1bil mark was a significant milestone for the company and we decided to share the achievement with our staff by organising this trip,” he said, adding that it had a similar trip in 1997 to Phuket when collected premiums crossed RM500mil.  

 KURNIA :  [Stock Watch]  [News]

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