MSIG MALAYSIA PROMISES PROFIT GROWTH OF 10%

The Malaysian arm of Japanese insurer Mitsui Sumitomo Insurance (MSIG) has said that net profit should grow by 10% this year as a result of more effective claims and costs management, and improved returns on investments. This would equate to a net profit of about 112m ringgit. CEO Song Yam Lim said that premium income should grow by 7% to 709m ringgit. MSIG was formed through the combination of the Japanese-owned insurer with the Malaysian operations of UK-based Aviva, which made MSIG the second-largest non-life player in the country. Meanwhile MSIG has signed a memorandum of understanding with the Malaysian Association of Bumiputra Tour and Travel Agents to offer travel insurance. Mr Song said that “travel insurance has the potential to grow fast in tandem with the country’s tourism industry”, and expected that premiums would begin to take a larger proportion of MSIG’s total non-life income, of which it currently makes up just 1%. MSIG said it anticipated some 500,000 ringgit a year premium income as a result of its deal with Bumiputra Malaysia.