KOTA KINABALU: Progressive Insurance Bhd has recorded an increase of 14 per cent in gross revenue in 2012 amounting to RM161 million with profit before tax of RM19.4 million.
Its chairman, Datuk Datu Harun Datu Mansor, said it was an 80 per cent increase in profit over the previous year, and he believes this was the best ever year of the company’s performance in its 39-year corporate history.
“Progressive Insurance has declared a dividend of RM7.62 million for 2012 and over the last 10 years have declared RM59.2 million which is 59.2 per cent of our paid up capital, and our shareholders funds now stands at RM184.8 million.
“In 2009, Bank Negara Malaysia introduced the Risk Base Capital environment, whereby insurance companies are rated through their Internal Capital Adequacy Ratio, which must be kept above 130 per cent with most insurance companies keeping their ratio at 180 per cent to 200 per cent.
“Progressive Internal Capital Adequacy Ratio as at 31 December 2012 is 304 per cent, which demonstrated our strong financial ratings,” he said.
Harun said this at the Progressive Insurance Bhd. dinner held in conjunction with the handing over of dividend to the state government.
He added that the company has also launched its Online e-Learning System last year to allow its agents and staff to learn about their products in the comfort of their home during their leisure hours.
“Reinsurance markets suffered huge losses in 2011 due to unprecedented catastrophies. Costs of reinsurance have escalated substantially, but at Progressive Insurance we are happy to report our reinsurance programme has seen rates reduction and improved terms, which demonstrated our conservative business acceptance approach is endorsed by the international reinsurance fraternity.
“2013 will be a challenging year for us as we lost a major client worth RM15 million due to no fault of ours. We will have to work extra hard to meet our business plan of RM180 million, as at May this year, we are 11 per cent up over same period last year, added Harun.