•Kurnia Asia Berhad (KAB) was incorporated in Malaysia on 16February 2001 as a private limited company under the name ofKurnia Asia Sdn Bhd.• On 21 November 2002, the Company converted into a publiclimited company and assumed its present name.•KAB is the holding company which wholly owns Kurnia Insurans(Malaysia) Berhad (KIMB)- the largest general insurer in Malaysia.•Since its inception, Kurnia has been growing tremendously anddelivering outstanding operational results and profitability underthe leadership of its hands-on and experienced management team.
•Kurnia Insurans (Malaysia) Berhad was incorporated on 30th December1978.• Kurnia Insurans (Malaysia) Berhad, in its present shape and form came tobe, only in 1991, when the present owners bought the company.•Rising from the ruins of an insolvent Insurer, Kurnia Insurans has becomeone of the most successful general insurance companies in Malaysia.• Kurnia Insurans success is founded on fair business practices, which protectthe legitimate interests of its policyholders and offers its service providerslucrative and honest income opportunities.•Kurnia Asia Berhad culture • Knowledge • Unity • Nobility • Resourcefulness • Innovativeness • Ability
Kurnia corporate name and logo was launched on 1st July 1991. The sailing ship in a calm sea symbolizes stability and dynamism of the group as it achieves its objectives. The "R" in the word KURNIA represents a bird flying, signifying courage, strength, vitality and swiftness. The colour blue represents serenity, peace and stability. The symbol represents "K" for Kurnia. The water element represents prosperity.
Share Information Stock Exchange Listing: Bursa Malaysia Securities Berhad Date of Listing:27th January 2005 Stock Symbol: KURASIA (KLSE) KURNIA.KL (Reuters) KUAB MK (Bloomberg)
Vision" To be a leading financial services group in the ASEAN region "
Mission To anticipate, grasp and satisfying customer’s changing needs. ( 1 ) To provide quality services to customers. ( 2 ) To expand regionally into neighbouring countries and become a leading insurer in the ASEAN region.( 3 ) To generate reasonable returns to shareholders consistently. ( 4 ) To work as a teamwork together sharing the ideas towards unlimited possibilities and new dimensions. ( 5 ) To be a responsible and caring corporate citizen for the society and nation. ( 6 )
Mission Statement Component1. Customer ( age of 19-65 years old) -renewal up to age 75 years oldg Products or servicesi Marketi Concern for survival, growth & profitabilityi Concern for employeeso Concern for public image
PRODUCT GALLERY MOTOR MEDICAL PERSONAL ACCIDENT HOME BUSINESS Commercial and Industry Engineering Construction Marine Liability Employee Benefits General Packaged Products
EXTERNAL ASSESSMENT OPPORTUNITIES Economic Forces Growth Technological Forces Can purchase insurance via internet Demographic Forces Different types of ages can purchase different type of product insurance Enrolment age from 19 years old up to 65 years old. Renewal is up to age 75 at the option of the policyholder.
EXTERNAL ASSESSMENT Political Forces Foreign workers can be protected by the product from the employees benefit ( foreign workers compensation scheme insurance) which can maintain the political stability between Malaysia and foreign countries. Natural environment Forces Eg: in case there have nature disaster happen (landslide), consumer is protected under home scheme insurance
EXTERNAL ASSESSMENT THREATS Competitive Forces Competitors 1. Hong Leong Assurance Berhad 2. Manulife Insurance Berhad 3. Jerneh Insurance Berhad 4. MAA Insurance 5. Pacific & Orient Bhd 6. MUI Continental Insurances Bhd 7. Multi Purpose Insurance Bhd 8. Allianz Life Insurance Malaysia Berhad
EXTERNAL ASSESSMENT No Islamic product No life insurance Lack of exposure on insurance
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE OPPORTUNITIES2. Demand for Islamic product 0.16 4 0.643. Growth 0.12 3 0.364. Different types of ages can purchase 0.10 3 0.30 different type of product insurance5. Able to protect equipment when natural 0.05 2 0.10 disaster occurred6. Foreign workers ca purchase insurance 0.04 1 0.047. Can purchase insurance via internet 0.08 2 0.16 THREATS2. Competitors 0.19 4 0.763. No Islamic product 0.11 3 0.334. No life insurance 0.08 2 0.165. Lack of exposure on insurance 0.07 1 0.07 TOTAL 1.00 2.92
INTERNAL ASSESSMENT Management Planning Expand its agency network and building a strong service culture to meet expectation Issue and deliver policies in 24 hours and also assigned dedicated marketing executive to attend and resolve any problems regarding policies or claims procedures Organizing Have job specification – audit committee, risk management committee, remuneration committee, nominating committee
Motivating Agency Convention and Awards Presentation - during this event that top performing agents are awarded and honored as a sign of appreciation Employer of choice – improves staff through employee training and also enhancing benefits and values so they will continue to be the driving force in the company. Staffing Good relationship between shareholders and investors Have a lot of workers – commitment from workers
Marketing Products/Services All Kurnia staff are committed to deliver their service in accordance with the Service Commitment certified to ISO 9001, an internationally recognized quality management system. Marketing activities – through internet, salesperson dealer relations. Pricing Competitors - companies that offer the best coverage at the most affordable rates
Promotion Advertisement– television, internet Direct mail – postcard and letters Build an online presence – website, blog Pamphlet Place / Distribution Intermediaries – agent
Financial Analysis Liquidity Ratios Current ratio = 1930051 / 91310 = 21.14 times It measures whether or not firm has enough resources to pay its debt over next 12 months. Kurnia Asia Berhad have good short term financial strength. Quick ratio = (1930051 – 1191656) / 91310 = 8.09 times Ability of company use its near cash or quick assets to extinguish or retire it current liabilities immediately. Cash ratio = 25586 / 91310 = 0.28 times It measure company liquidity can repay short term debt. It useful for creditors when decide how much debt, they willing extend to be asking party.
Profitability ratios Operating profit margin = 65980 / 495962 = 13.3% Kurnia Asia Berhad has good cost control or sale increase faster than cost which optimal solution for company. Net profit margin = 61381 / 495962 = 12.38% Effectiveness of the company convert revenue into actual profit. Return on asset = 61381 / 2128133 = 2.88% The higher ROA, the efficient company use its asset base to generate sale. Return on equity = 61381 / 645810 = 9.50% The higher ROE, the efficient the company to allow investor use the money for investment.
Leverage Ratio Debt ratio = Total Liabilities / Total Assets = 1 482 323 / 2 128 133 = 69.65 % ratio is greater than 50%, most of the companys assets are financed through debt. Companies with high debt/asset ratios are said to be "highly leveraged," not highly liquid as stated above. A company with a high debt ratio (highly leveraged) could be in danger if creditors start to demand repayment of debt. Debt to equity = Total Debt / Total Equity = 1 391 013 / 645 810 = 2.15 indicates that for each RM1 of equity financing, RM 2.15 of financing is provided by creditors.
Activity Ratio FATO = Sales / Fixed Assets = 495 962 /198 082 =. 2.5038 It is good because the high ratio indicates the business has less money, tied up in fixed assets for each RM of sales revenue. TATO = Sales / Total Assets = 495 962 / 2 128 133 = 0.2331 This may indicate a problem with one or more of the asset categories composing total assets. There could be a problem with inventory. The firm could be holding obsolete inventory and not selling inventory fast enough.
OPERATIONS Facilities location – allocate booth promoting insurance. Capacity Capacity planning- RM600Million representing strength and stability. Workforce Managing unskilled employees- train new employee to get license. Quality Services- very efficient in providing services.
Research and Development Effective use of Information & Communications Technology in order to reduce costs Increase productivity
KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE STRENGHTS2.Expand agency network 0.16 4 0.643.Job specification 0.12 4 0.484.Agency convention & award presentation 0.05 3 0.155.Lots of workers 0.04 3 0.126. Service Commitment certified to ISO 9001- 0.07 3 0.21Quality management System7.Offer best coverage at most affordable rate 0.05 3 0.158.Advertisement- television & internet 0.05 3 0.15 WEAKNESSES•Salespeople are lack of knowledge or 0.02 2 0.04experience 2 0.08•Only provide free 24hours on vehicle break 0.04down services•Lack of promotional tools 0.03 2 0.06•Only promote during festival season 0.15 1 0.15•Cash ratio less than 1 0.14 1 0.14•Only provide general insurance 0.08 2 0.16 0.14TOTAL 1.00 2.53
SWOT MATRIX ANALYSIS Strenghts Weaknesses 1)Expand agency network 1)Salespeople are lack of knowledge 2)Job specifications or experience 3)Agency convention and award 2)Only provide free 24 hours on presentation vehicle down services 4)Lots of workers 3)Lack of promotional tools by 20% 5)Service commitment certified to ISO 4)Only promote during festival season 9001-quality management system 5)Cash ratio less than 1 6)Offer product with the best coverage 6)Only provide general types of at most affordable rate insurance 7)Advertisement – television and internetOpportunities SO WO1)Demand for islamic product •add new product of insurance for •increase the usage of web site2)Different types of age can purchase foreign workers (S6,O4) services to 30% (W4,O5)different types of product insurance •promotion through website or online •add 20% Islamic product in general3)Able to protect equipment when email to all existing insurance or takafulnatural environment occured customer to inform new product ( W6,O1)4)Foreign workers can purchase (S7,O5) •add more promotional tools by5)Can purchase insurance via internet upgrading websites services by 50% (W3,O5)Threats ST WT •establish new firm and hire more • retraining or having programs every1)Competitors workers about 15% to this services month to the salespeople (W1,T1)2)No islamic product (S1,S4,T1) •increase cash ratio of more than 1 by •on average at least of 2 to 4 outlets of having new Islamic product.(W5,T2)3)No life insurance kurnia depending on the market size. •create new life insurance ( W6,T3)4)Lack of exposure on insurance (S1,T1)
BOSTON CONSULTING GROUP (BCG) MATRIXSTAR•Product Development•Market Development
Balanced ScorecardArea of Objectives Measures of Target Time Expectation Primarily ResponsibilityA) Customer serviceperspective •Release new product2)Meet customer to achieve 30% Short term: Within 1 -A personal accidentsatisfaction year plan called Lady Protector - MediGuard ladyB) Operationalperspective2)Increase companies To increase EBIT by Short term: Within 1 Reduce company’sincome from operating 30% year operating expensesactivitiesC) Financial Increase equity byperspective Increase by 25% Short-term: within 2 issuing new shares.1)Increase asset yearD) EmployeesPerspective Short-term:within 1 year •Hiring new agents•Increase productivity 15%of the company.
REENGINERING One Touch Campaign aims to promote the use of Kurnia’s Toll Free hotline number 1-800-88-3833 by educating private car comprehensive policyholders to save the number into their mobile phone’s speed dial function and call in the event of an emergency. Insurer embarks on next wave of transformation It is a transformation programme focused on further improving our operational efficiency and service standards to better serve their customers and agents nationwide.