If tomorrow price is right, I might swing trade Kurnia Asia, pls fasten your seat belt.
Written by Joseph Chin
Thursday, 29 October 2009 19:32
KUALA LUMPUR: KURNIA ASIA BHD [] posted net profit of RM32.25 million in the third quarter ended Sept 30 compared with a net loss of RM12.11 million a year ago due to a turnaround in the investment portfolio and improved underwriting performance.
The insurer said on Thursday, Oct 29 that revenue declined 16.2% to RM254.96 million from RM304.49 million. Earnings per share were 2.16 sen compared with loss per share of 0.81 sen. However, the third quarter earnings were below the RM42.65 million in the previous quarter ended June 30, 2009.
Executive chairman Tan Sri Kua Kian Kooi said the operating environment was increasingly competitive but the group managed to record positive underwriting performance for five consecutive quarters.
He said the internal on-going transformation and revitalisation programme had resulted in an improvement in underwriting results on-year.
The group recorded net investment and other income of RM34.02 million for the period under review, compared to net investment loss of RM7.988 million last year.
The improvement was mainly due to the recovery of equity market that allowed some write-back of mark-to-market losses provided previously.
On the underwriting end, the group's gross premium declined year-on-year by 18.1% to RM231.31 million from RM282.55 million due to its more stringent risk selection practice.
Despite the drop in gross premium, the group's underwriting surplus improved 38.0% to RM3.68 million for the period ended Sept 30, 2009 from the RM2.67 million a year ago.
"Besides the underwriting surplus and positive net investment result, the group recorded a reduction in its management expenses of RM10.87 million from Sept 30, 2008 and RM22.8 million from last quarter," he said.
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