KUALA LUMPUR, AUG 8, 2005 - Uni.Asia General Insurance Berhad recorded a pre-tax profit RM59 million for financial year ended 31 March 2005, on the back of an RM37.0 million underwriting surplus, which rose 16 per cent from the RM31.9 million previously.

While gross premium grew marginally by 1.4 percent from RM316.7 million to RM321.0 million, decrease in overall management expenses and strong bad debts recovery during the period boosted the underwriting surplus.

Pre-tax profit declined by 18 per cent from RM71.8 million recorded last year primarily due to a 45 per cent decrease in investment income from RM42.3 million to RM23.1 million amidst a challenging investment climate. Profit after tax is down marginally by two per cent from RM50.2 million to RM49.3 million.

"Uni.Asia General remains one of the most profitable general insurers, underlined by our strong underwriting operations. Gross premium grew in all sectors except fire, with the motor business contributing 73.7 per cent of total premium," said Hashim Harun, Chief Executive Officer/ Managing Director of Uni.Asia General.

With automotive sales expected to exceed 500,000 units this year according to MAA, motor business will continue to be the major premium earner and growth driver for the company for FY2006.

"Uni.Asia General continues to lead with innovation. In recent times, we introduced various unique motor insurance products that address what customers truly need via strategic tie-ups with automotive marques such as Chevrolet and Porsche, as well as the first and only used car warranty product called AutoPlus. The results have been truly encouraging. This has inspired us to work even harder to develop more value-added packages for the ever discerning customers," added Hashim.

Despite the motor business contributing almost three-quarters of total premium, Uni.Asia General also places heavy emphasis on the continued development of the non-motor segment. For instance, the company earlier this year launched BisPro, a flexible business insurance plan with five different packages tailored to meet the insurance requirements of small to medium-sized businesses, demonstrating the same innovative streak evident in its motor business.

The insurer also continues to pay close attention to the development of existing and new business channels. By introducing new, unique products as well as supporting and nurturing the growth of all business channels, Uni.Asia General expects sustained, strong contributions from its traditional agency force, franchise holders and bancassurance partners.

"We believe all our effort and innovation will send a strong message across to customers that we understand their specific insurance requirements and strive to provide for what is truly needed," Hashim concluded.