Buletin Takaful

Source: The Star, 17th June 2010

Kurnia Asia Bhd has applied for a takaful licence and is awaiting the response from Bank Negara, said director of corporate planning/investor relations Dr James Tee.

Group chief financial officer and director Looi Kok Leong said the company had submitted the application last year.

On whether the company would need a Middle East partner to enter its takaful business, he said: “Not necessary. But we did talk to certain parties on possible tie-ups but it is too early to disclose details.”

On the company’s growth for this year, Tee said it aimed for 8% to 10% growth in gross premium from about RM1bil last year. The industry average was 8%, he added.

In terms of net premium, Kurnia currently has 15% share of the motor insurance segment and 2.8% in the non-motor segment.

Kurnia targeted its non-motor segment to account for a third of its business in three to five years from about 20% currently, Tee said, adding that it was targeting a double-digit growth for the segment this year.

“Fifteen per cent of our business was contributed by the non-motor segment last year and the contribution was 12% in 2008. It is in an increasing trend and the effort is to expand this segment via the expansion of distribution channels, workforce and new products,” he added.

Looi said Kurnia, which has a presence in Thailand and Indonesia, was focusing on the Malaysian operations. “Indonesia and Thailand will be a priority if we want to expand abroad. We also see the opportunities of entering Cambodia,” he said, adding that the contribution from overseas was still small.

The company currently has six branches each in Thailand and Indonesia and it expects overseas business to contribute 20% to 25% to revenue in three to five years.