Im­pact on AIA min­i­mal, says CEO

New Straits Times - - Business -

KUALA LUMPUR: Gen­eral In­sur­ance As­so­ci­a­tion of Malaysia (PIAM) mem­ber AIA Bhd, which was re­cently im­posed a fi­nan­cial penalty by the Malaysia Com­pe­ti­tion Com­mis­sion (MyCC), says its im­pact on the com­pany will be min­i­mal.

“We are one of the com­pa­nies in­volved. How­ever, it is a small part of our busi­ness. We are prob­a­bly one of the small­est play­ers, so the im­pact is small,” said AIA chief ex­ec­u­tive of­fi­cer Anusha Thavara­jah at its fi­nan­cial re­sults brief­ing, here, yes­ter­day.

Last month, MyCC im­posed a RM213.4 mil­lion penalty on PIAM and its 22 mem­bers for an an­ti­com­pet­i­tive agree­ment reached with the Fed­er­a­tion of Au­to­mo­bile Work­shop Own­ers As­so­ci­a­tion of Malaysia.

The penalty in­volved the hourly rates and spare-part prices charge­able for com­mon­lyused ve­hi­cles mod­els from spe­cific man­u­fac­tur­ers, in­clud­ing Pro­ton, Pero­dua, Naza, Nis­san, Toy­ota and Honda.

AIA yes­ter­day an­nounced that it recorded its fourth con­sec­u­tive year of dou­ble-dig­it­growth on the back of a 23 per cent in­crease in value of new busi­ness (VONB) to RM815 mil­lion for the fi­nan­cial year ended Novem­ber 30 last year.

AIA’s fam­ily taka­ful busi­ness de­liv­ered a 47 per cent in­crease in an­nu­alised new con­tri­bu­tions, while its part­ner­ship dis­tri­bu­tion and cor­po­rate so­lu­tions recorded VONB growth of 18 and 12 per cent, re­spec­tively.

An­nu­alised new pre­mi­ums grew 25 per cent to RM1.4 bil­lion, while op­er­at­ing profit after tax rose six per cent to more than RM1.1 bil­lion. “Con­sid­er­ing only 56 per cent of the pop­u­la­tion is in­sured, there still re­mains a sig­nif­i­cant sec­tion of Malaysians who are ei­ther not in­sured or un­der-in­sured,” she said.

This year, the com­pany will also fo­cus on ex­pand­ing the reach of its AIA Vi­tal­ity cam­paign to in­clude workplace health.

Anusha Thavara­jah

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