Impact on AIA minimal, says CEO
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.