2. •Kurnia Asia Berhad (KAB) was incorporated in Malaysia on 16
February 2001 as a private limited company under the name of
Kurnia Asia Sdn Bhd.
• On 21 November 2002, the Company converted into a public
limited company and assumed its present name.
•KAB is the holding company which wholly owns Kurnia Insurans
(Malaysia) Berhad (KIMB)- the largest general insurer in Malaysia.
•Since its inception, Kurnia has been growing tremendously and
delivering outstanding operational results and profitability under
the leadership of its hands-on and experienced management team.

3. •Kurnia Insurans (Malaysia) Berhad was incorporated on 30th December
1978.
• Kurnia Insurans (Malaysia) Berhad, in its present shape and form came to
be, only in 1991, when the present owners bought the company.
•Rising from the ruins of an insolvent Insurer, Kurnia Insurans has become
one of the most successful general insurance companies in Malaysia.
• Kurnia Insurans' success is founded on fair business practices, which protect
the legitimate interests of its policyholders and offers its service providers
lucrative and honest income opportunities.
•Kurnia Asia Berhad culture
• Knowledge
• Unity
• Nobility
• Resourcefulness
• Innovativeness
• Ability

4.  Kurnia corporate name and logo was launched on 1st July
1991.
 The sailing ship in a calm sea symbolizes stability and
dynamism of the group as it achieves its objectives.
 The "R" in the word KURNIA represents a bird flying,
signifying courage, strength, vitality and swiftness.
 The colour blue represents serenity, peace and stability.
 The symbol represents "K" for Kurnia.
 The water element represents prosperity.

5. Share Information
 Stock Exchange Listing:
 Bursa Malaysia Securities Berhad
 Date of Listing:27th January 2005
 Stock Symbol:
 KURASIA (KLSE)
 KURNIA.KL (Reuters)
 KUAB MK (Bloomberg)

6. Vision
" To be a leading financial services group in the ASEAN
region "

7. Mission
 To anticipate, grasp and satisfying customer’s changing
needs. ( 1 )
 To provide quality services to customers. ( 2 )
 To expand regionally into neighbouring countries and
become a leading insurer in the ASEAN region.( 3 )
 To generate reasonable returns to shareholders
consistently. ( 4 )
 To work as a teamwork together sharing the ideas
towards unlimited possibilities and new dimensions. ( 5 )
 To be a responsible and caring corporate citizen for the
society and nation. ( 6 )

8. Mission Statement Component
1. Customer ( age of 19-65 years old)
-renewal up to age 75 years old
g Products or services
i Market
i Concern for survival, growth & profitability
i Concern for employees
o Concern for public image

9. PRODUCT GALLERY
 MOTOR
 MEDICAL
 PERSONAL ACCIDENT
 HOME
 BUSINESS
 Commercial and Industry
 Engineering
 Construction
 Marine
 Liability
 Employee Benefits
 General
 Packaged Products

10. EXTERNAL ASSESSMENT
OPPORTUNITIES
 Economic Forces
 Growth
 Technological Forces
 Can purchase insurance via internet
 Demographic Forces
 Different types of ages can purchase different type of
product insurance
 Enrolment age from 19 years old up to 65 years old.
Renewal is up to age 75 at the option of the
policyholder.

11. EXTERNAL ASSESSMENT
 Political Forces
 Foreign workers can be protected by the product from
the employees benefit ( foreign workers compensation
scheme insurance) which can maintain the political
stability between Malaysia and foreign countries.
 Natural environment Forces
 Eg: in case there have nature disaster happen
(landslide), consumer is protected under home scheme
insurance

12. EXTERNAL ASSESSMENT
THREATS
 Competitive Forces
 Competitors
1. Hong Leong Assurance Berhad
2. Manulife Insurance Berhad
3. Jerneh Insurance Berhad
4. MAA Insurance
5. Pacific & Orient Bhd
6. MUI Continental Insurances Bhd
7. Multi Purpose Insurance Bhd
8. Allianz Life Insurance Malaysia Berhad

13. EXTERNAL ASSESSMENT
 No Islamic product
 No life insurance
 Lack of exposure on insurance

14. KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
SCORE
OPPORTUNITIES
2. Demand for Islamic product 0.16 4 0.64
3. Growth 0.12 3 0.36
4. Different types of ages can purchase 0.10 3 0.30
different type of product insurance
5. Able to protect equipment when natural 0.05 2 0.10
disaster occurred
6. Foreign workers ca purchase insurance 0.04 1 0.04
7. Can purchase insurance via internet 0.08 2 0.16
THREATS
2. Competitors 0.19 4 0.76
3. No Islamic product 0.11 3 0.33
4. No life insurance 0.08 2 0.16
5. Lack of exposure on insurance 0.07 1 0.07
TOTAL 1.00 2.92

15. INTERNAL ASSESSMENT
 Management
 Planning
 Expand its agency network and building a strong
service culture to meet expectation
 Issue and deliver policies in 24 hours and also
assigned dedicated marketing executive to attend
and resolve any problems regarding policies or
claims procedures
 Organizing
 Have job specification – audit committee, risk
management committee, remuneration committee,
nominating committee

16.  Motivating
 Agency Convention and Awards Presentation -
during this event that top performing agents are
awarded and honored as a sign of appreciation
 Employer of choice – improves staff through
employee training and also enhancing benefits and
values so they will continue to be the driving force in
the company.
 Staffing
 Good relationship between shareholders and
investors
 Have a lot of workers – commitment from workers

17.  Marketing
 Products/Services
 All Kurnia staff are committed to deliver their
service in accordance with the Service Commitment
certified to ISO 9001, an internationally recognized
quality management system.
 Marketing activities – through internet, salesperson
dealer relations.
 Pricing
 Competitors - companies that offer the best
coverage at the most affordable rates

18.  Promotion
 Advertisement– television, internet
 Direct mail – postcard and letters
 Build an online presence – website, blog
 Pamphlet
 Place / Distribution
 Intermediaries – agent

19.  Financial Analysis
 Liquidity Ratios
 Current ratio = 1930051 / 91310 = 21.14 times
 It measures whether or not firm has enough resources to pay its
debt over next 12 months.
 Kurnia Asia Berhad have good short term financial strength.
 Quick ratio = (1930051 – 1191656) / 91310 = 8.09 times
 Ability of company use its near cash or quick assets to extinguish
or retire it current liabilities immediately.
 Cash ratio = 25586 / 91310 = 0.28 times
 It measure company liquidity can repay short term debt.
 It useful for creditors when decide how much debt, they willing
extend to be asking party.

20.  Profitability ratios
 Operating profit margin = 65980 / 495962 = 13.3%
 Kurnia Asia Berhad has good cost control or sale increase
faster than cost which optimal solution for company.
 Net profit margin = 61381 / 495962 = 12.38%
 Effectiveness of the company convert revenue into actual
profit.
 Return on asset = 61381 / 2128133 = 2.88%
 The higher ROA, the efficient company use its asset base to
generate sale.
 Return on equity = 61381 / 645810 = 9.50%
 The higher ROE, the efficient the company to allow investor
use the money for investment.

21.  Leverage Ratio
 Debt ratio = Total Liabilities / Total Assets
= 1 482 323 / 2 128 133
= 69.65 %
 ratio is greater than 50%, most of the company's assets
are financed through debt. Companies with high
debt/asset ratios are said to be "highly leveraged," not
highly liquid as stated above. A company with a high debt
ratio (highly leveraged) could be in danger if creditors
start to demand repayment of debt.
Debt to equity = Total Debt / Total Equity
= 1 391 013 / 645 810
= 2.15
 indicates that for each RM1 of equity financing, RM 2.15
of financing is provided by creditors.

22.  Activity Ratio
 FATO = Sales / Fixed Assets
= 495 962 /198 082
=. 2.5038
It is good because the high ratio indicates the business
has less money, tied up in fixed assets for each RM of
sales revenue.
 TATO = Sales / Total Assets
= 495 962 / 2 128 133
= 0.2331
This may indicate a problem with one or more of the
asset categories composing total assets. There could be a
problem with inventory. The firm could be holding
obsolete inventory and not selling inventory fast
enough.

23. .

24. OPERATIONS
 Facilities location – allocate booth promoting
insurance.
 Capacity
 Capacity planning- RM600Million representing
strength and stability.
 Workforce
 Managing unskilled employees- train new employee
to get license.
 Quality
 Services- very efficient in providing services.

25. Research and Development
 Effective use of Information & Communications
Technology in order
 to reduce costs
 Increase productivity

26. KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED
SCORE
STRENGHTS
2.Expand agency network 0.16 4 0.64
3.Job specification 0.12 4 0.48
4.Agency convention & award presentation 0.05 3 0.15
5.Lots of workers 0.04 3 0.12
6. Service Commitment certified to ISO 9001- 0.07 3 0.21
Quality management System
7.Offer best coverage at most affordable rate 0.05 3 0.15
8.Advertisement- television & internet 0.05 3 0.15
WEAKNESSES
•Salespeople are lack of knowledge or 0.02 2 0.04
experience 2 0.08
•Only provide free 24hours on vehicle break 0.04
down services
•Lack of promotional tools 0.03 2 0.06
•Only promote during festival season 0.15 1 0.15
•Cash ratio less than 1 0.14 1 0.14
•Only provide general insurance 0.08 2 0.16
0.14
TOTAL 1.00 2.53

27. SWOT MATRIX ANALYSIS
Strenghts Weaknesses
1)Expand agency network 1)Salespeople are lack of knowledge
2)Job specifications or experience
3)Agency convention and award 2)Only provide free 24 hours on
presentation vehicle down services
4)Lots of workers 3)Lack of promotional tools by 20%
5)Service commitment certified to ISO 4)Only promote during festival season
9001-quality management system 5)Cash ratio less than 1
6)Offer product with the best coverage 6)Only provide general types of
at most affordable rate insurance
7)Advertisement – television and
internet
Opportunities SO WO
1)Demand for islamic product •add new product of insurance for •increase the usage of web site
2)Different types of age can purchase foreign workers (S6,O4) services to 30% (W4,O5)
different types of product insurance •promotion through website or online •add 20% Islamic product in general
3)Able to protect equipment when email to all existing insurance or takaful
natural environment occured customer to inform new product ( W6,O1)
4)Foreign workers can purchase (S7,O5) •add more promotional tools by
5)Can purchase insurance via internet upgrading websites services by 50%
(W3,O5)
Threats ST WT
•establish new firm and hire more • retraining or having programs every
1)Competitors
workers about 15% to this services month to the salespeople (W1,T1)
2)No islamic product (S1,S4,T1) •increase cash ratio of more than 1 by
•on average at least of 2 to 4 outlets of having new Islamic product.(W5,T2)
3)No life insurance
kurnia depending on the market size. •create new life insurance ( W6,T3)
4)Lack of exposure on insurance (S1,T1)

28.
BOSTON CONSULTING GROUP (BCG) MATRIX
STAR
•Product Development
•Market Development

30. Balanced Scorecard
Area of Objectives Measures of Target Time Expectation Primarily
Responsibility
A) Customer service
perspective •Release new product
2)Meet customer to achieve 30% Short term: Within 1 -A personal accident
satisfaction year plan called Lady
Protector
- MediGuard lady
B) Operational
perspective
2)Increase companies To increase EBIT by Short term: Within 1 Reduce company’s
income from operating 30% year operating expenses
activities
C) Financial Increase equity by
perspective Increase by 25% Short-term: within 2 issuing new shares.
1)Increase asset year
D) Employees
Perspective Short-term:within 1 year •Hiring new agents
•Increase productivity
15%
of the company.

31. REENGINERING
 One Touch Campaign
 aims to promote the use of Kurnia’s Toll Free hotline
number 1-800-88-3833 by educating private car
comprehensive policyholders to save the number into
their mobile phone’s speed dial function and call in the
event of an emergency.
 Insurer embarks on next wave of transformation
 It is a transformation programme focused on further
improving our operational efficiency and service
standards to better serve their customers and agents
nationwide.