BERJAYA SOMPO EYES ACQUISITIONS
Insurance firm also targeting RM900m in gross premium collection this year
BERJAYA Sompo Insurance Bhd, which is 70 per cent-owned by Sompo Holdings (Asia) Pte Ltd, is looking to acquire a competitor.
“We are constantly on a lookout for acquisition targets,” said Berjaya Sompo Insurance chief executive officer Tan Sek Kee after the launch of “SOMPO motor” policy, here, yesterday.
“We will not close the door (on an opportunity), but we’ll have to look at the timing and pricing. If there are good opportunities, it is something that we will definitely look at.”
Tan was responding to a query on Berjaya Sompo’s position, following Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus’ recent call for insurers to consider synergistic partnerships.
Last week, at the Malaysian Insurance Institute Summit on “Innovation in a Disruptive Era”, the central bank advised insurers to consolidate and benefit from economies of scale to gain a competitive edge.
On targets that would make a good fit, he said: “At this point in time, it would be too sensitive to answer that question”.
On the size of Berjaya Sompo’s war chest for potential acquisitions, Tan said money was not an issue as Sompo Holdings had deep pockets.
Berjaya Sompo currently ranks eighth largest in terms of annual gross premium collection, with a network of 20 offices and 2,800 agents nationwide.
On the company’s outlook, Tan said his team was targeting RM900 million in gross premium collection this year, an 18 per cent growth over last year’s RM765 million.
“This will be boosted by our new motor policy and long-term tie-up with CIMB Group,” he said.
Earlier this year, Tan said CIMB Group Holdings Bhd and Sompo Holdings (Asia) Pte Ltd launched their bancassurance partnership in Malaysia, whereby CIMB would distribute Sompo’s non-life insurance solutions through its distribution network.
This 18-year partnership forms part of the CIMB-Sompo regional arrangement, which also includes Singapore, Indonesia and Thailand.