KSK to grow insurance businesses in Indonesia, Thailand

KSK Group Bhd plans to boost its insurance businesses in Indonesia and Thailand via organic and inorganic growth strategies and aimed to reach the top ten position within the next five years. 

Its chief operating officer, Joanne Kua, said the company had allocated RM100mil from the RM1.55bil proceeds from the disposal of 100 percent equity interest in Kurnia Insurans (M) Bhd to AmG Insurance Bhd. 

She said KSK, formerly known as Kurnia Asia Bhd, would focus on growing its general insurance businesses via PT Kurnia Insurance Indonesia and Kurnia Insurance (Thailand) Co Ltd (KIT). 

“Indonesia and Thailand offer good investment opportunities as they are both developing markets with large populations and growing middle-income groups,” she told a media briefing after the company’s extraordinary general meeting (EGM) yesterday. 

For the 2011 financial year, she said, the Indonesian market’s contribution was less than 5 percent of total revenue, while Thailand operations generated over 700 billion baht (100 baht = RM9.20). 

“The Thai operation is expected to grow by 6.1 percent and Indonesia 4.5 percent in 2013. KIT is projected to achieve gross premium income of two billion baht for the financial year ending December 31, 2012 and KII 300 billion rupiah for the same period,” she said. 

KSK shareholders approved the proposed disposal of its 100 percent equity interest in Kurnia Insurans (M) Bhd to AmG Insurance Bhd, she said. 

Kua said the deal would be completed this September. 

She said the board of directors had not decided on the special dividend. 

 

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