Uni.Asia General Insurance achieves RM64.5 million in gross profit

general insurance

Kuala Lumpur, 6 July 2007: Uni.Asia General Insurance Bhd posted another strong performance for the financial year ended 31 March 2007 when its profit before tax (PBT) increased by 5.3 per cent to RM64.5 million from RM61.3 million previously. Net profit rose in tandem by 9.3 per cent to RM45.5 million from RM41.6 million for the corresponding period last year.
This set of consistent results positioned Uni.Asia General as one of the most profitable general insurance companies in Malaysia.
"The combination of a strong investment income and a good underwriting income contributed to this set of sterling results. Our investment strategies have yielded positive results inline with Bursa Malaysia¹s strong performance and our underwriting business has continued to yield positive results with the bancassurance sales channel delivering another round of solid growth, "said Hashim Harun, Chief Executive Officer/Managing Director, Uni.Asia General.
Total gross premium decreased marginally by 10 per cent to RM324.6 million from RM361.6 million in the previous year. While motor premium declined by 13 per cent from RM278.9 million in the previous year to RM241.6 million in the current year, non-motor premiums remained unchanged at RM83 million. Meanwhile, contribution by the bancassurance sales channel surged by 23 per cent from RM60.8 million in the previous year to RM74.6 million in the current year.
"Dampened consumer sentiments coupled with rising interest rates, hire purchase credit tightening, rising oil prices and weak used car prices have contributed to slower motor premium sales last year. Nonetheless, our strategy to expand and widen our distribution network and to promote the growth of non-motor classes especially engineering and personal accident lines, helped to cushion the impact,² Hashim commented.
The company is on track to achieve its 3 years aim of a more balanced motor to non-motor business ratio of 60:40 with this year¹s ratio coming in at 74:26 compared to 77:23 in the previous year.
The focused expansion of the bancassurance business contributed about RM74.6 million in premium sales, accounting for almost 23 per cent of total gross premium. With a large combined network of 172 EON Bank and United Overseas Bank branches, reaching out to over one million customers, and the rapid introduction of new and innovative products, the company expects bancassurance premium sales to surpass RM80 million or 20 per cent of total gross premium in the current financial year.
"Uni.Asia General sees bancassurance as the key growth engine. We will continue to work closely with our banking partners to ramp up cross-selling as well as further develop products that suit the needs of their customers for our mutual benefit. " Hashim added
"Meanwhile, in the area of brand development, the Company will be commencing its 30th Anniversary celebration in the month of August 2007. We have plans to celebrate the joyous occasion with our staffs, customers and business partners for they are the ones that have contributed to the success of the company. " Hashim concluded.