Thursday 28 Mar 2024
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KUALA LUMPUR: AmGeneral Insurance Bhd, a 51%-owned subsidiary of AmBank (M) Bhd, has entered the final phase of integration between its two brands, AmAssurance and Kurnia Insurans (Malaysia) Bhd, said its chief executive officer Derek Roberts.

“We have entered the final phase of integration between the two brands and we hope to complete it as fast and as smooth as we can. We believe that the value accretion from the proposed acquisition would be realised upon completion,” he told reporters after launching AmAssurance Express, a motor claims settlement service that enables policyholders to make claims in a fast and hassle-free manner.

On Sept 26, 2012, AmGeneral completed the acquisition of Kurnia from KSK Group Bhd for RM1.63 billion in cash.

Controlled by executive chairman Tan Sri Kua Sian Kooi, KSK Group has interests in property development as well as insurance businesses in Thailand and Indonesia.

According to Roberts, AmGeneral will continue to operate and maintain the two brands so as to complement each other and offer its customers different product mix and benefits.

“Together, AmAssurance and Kurnia will offer unmatched solutions through diverse product offerings, distribution channel and efficient customer service. We will retain the two brands for now as Kurnia is deemed to have an indefinite useful life as it has over 20 years of recognition in the market,” he said.

As part of its strategic agenda, Roberts said AmGeneral will proceed with a number of investments in technology to strengthen the group’s back-end operations and delivery processes.

He said both AmAssurance and Kurnia brands have a 18.4% and 10.7% share of the motor insurance and general insurance markets by virtue of gross written premium, respectively. Last year, AmGeneral’s total gross written premium stood at RM1.7 billion.

“In general, we insure one in every five cars on the road. With four million customers, 32 branches and 7,000 agents and dealers throughout the nation, we are aiming for a larger share in the market through operational excellence,” he said.

For the financial year ended March 31, 2014 (FY14), AmGeneral’s net profit and gross earned premium leaped to RM207.80 million and RM2.1 billion from RM110.6 million and RM1.12 billion, respectively.

Going forward, Roberts said the motor insurance business will continue to contribute 80% to the total group revenue.

In FY14, income from its overall insurance business contributed 10% or RM2.29 billion to AmBank’s revenue.


This article first appeared in The Edge Financial Daily, on October 10, 2014.

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