By Shalina R.
RM10 mln dividend for State Govt from Progressive Insurance
KOTA KINABALU: The State Government received RM10,085,601 million in dividend payment for the development of the state from Progressive Insurance Bhd.
Chief Minister Datuk Seri Panglima Musa Aman said that despite a tough year 2016, Progressive Insurance had managed to achieve the best profit in its corporate history.
He said its dividend to shareholders at RM11.58 million was also the highest it had ever declared.
“Once again, Progressive Insurance has been consistent in declaring dividends to your shareholders, including the Sabah state government,” said the Chief Minister at the Progressive Insurance cheque handing over ceremony at Sutera Marina Club here, yesterday.
“The State Government is pleased to receive dividend payment of RM10,085,601 million. It is through dividends we receive, including from Progressive Insurance, that we are able to carry out some of our socio-economic programs for the people and to further develop Sabah.
“As Sabah continues on its economic growth path, through both state and federal programs and policies, we need all stakeholders including the insurance sector to be able to meet the needs of our goals, including in facilitating investments.
“I hope that Progressive Insurance will continue to offer relevant and attractive packages to meet the demand from new and existing business ventures in Sabah, and beyond our state,” he added.
Progressive Insurance chairman Datuk Datu Harun Datu Mansor said the general insurance company had declared RM94.75 million in dividend to shareholders, almost an equivalent paid up capital of RM100 million in the last 13 years.
“Our shareholders funds now exceed RM236 million as at December 31, 2016. Our Financial Capital Adequacy Ratio at 331%, is one of the highest in the insurance industry,” said Harun, whose speech was delivered by Progressive Insurance chief executive Datuk Francis Lai at the ceremony.
“We are optimistic 2017 will be a better year for us in terms of not so much of topline but our bottomline as our business development has shown positive results so far this year, and our May 2017 profit has also been encouraging at RM17.2 million, which is an increase of RM6.4 million over the same month last year. Barring any unforeseen claims, 2017 will be another good year for us,” he added.
In 2016, Harun said motor vehicle sales came down by 35%, affecting motor insurance.
Although the loss ratio overall for the industry has improved from previous years, especially Malaysian Motor Insurance Pool, results were in the positive for the first time in the last six years.
Progressive Insurance benefited from claims over provisions of RM12.3 million, making the RM28.84 million profit the best ever in its corporate history.
Finance Ministry permanent secretary Datuk Pengiran Hassanel Mohd Tahir, and Sabah Development Bank Bhd chairman Datuk Peter Siau also attended the ceremony.
Permodalan Bumiputra Sabah Bhd chairman Datuk John Ambrose, accompanied by the company group chief executive officer Sulaiman Mohd Noor, received a RM1,038,842 cheque from Progressive Insurance.