Financials
For The 4th Quarter Ended 30 June 2009
Condensed Consolidated Income Statements
The Condensed Consolidated Income Statements should be read in conjunction with the Annual Financial Report for the year ended 30 June 2008
Condensed Consolidated Balance Sheets
The Condensed Consolidated Balance Sheets should be read in conjunction with the Annual Financial Report for the year ended 30 June 2008
Review of Performance
The Group recorded a net profit of RM57.050 million for the year ended 30th June 2009, as opposed to net loss of RM301.789 million recorded last year. The significant improvement was mainly driven by the turnaround in operating profits, which amounted to RM38.806 million and net tax benefits, which amounted to RM17.982 million as elaborated in Section B5 below. The said operating profits was arrived at after taking into account finance expenses of RM16.545 million, management costs of RM7.896 million and an impairment loss of RM5.0 million for the goodwill arising from the investment in KII.
From the General Insurance Revenue Account, the Group's gross premium declined year-on-year by 6.1% to RM1.052 billion from RM1.120 billion. The gross premium of the Group declined by virtue of its more stringent risk selection practice. Notwithstanding the drop in gross premium, the Group's underwriting performance surged to a surplus of RM20.821 million for the year ended 30th June 2009 compared to a deficit of RM401.723 million recorded in last year.
The significant turn around in the general insurance businesses was due to the following improvements:
- claims expenses decreased significantly year-on-year to RM648.296 million representing improvement in claims ratio to a normalized level of 65.9% as a result of more stringent claims management practices in KIMB during FYE 30 June 2009 after having strengthened KIMB's overall claims reserves the year before; and
- management expenses declined year-on-year by RM21.762 million to RM213.500 million representing an improvement in management cost ratio to 23.1% due to various cost management initiatives that have begun to show positive impact.
Despite the poor equity market condition experienced during the year ended 30th June 2009, the Group recorded a net investment and other income of RM47.785 million owing to the relatively defensive investment strategies taken by the Group after taking into account principally the impairment loss of RM5.034 million on property, plant and equipments.
The Group's year-to-date results are mainly derived from KIMB. KII recorded net loss of RM1.162 million for the financial period under review. The Group also equity-accounted its share of its associate company, KIT's net loss amounting to RM0.831 million for the relevant portion of the period under review since its inception in the Group.
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