Kurnia Asia Continued Losses Is Considered A Turnaround??

Posted this recently: Shocking Losses Reported By Kurnia Asia!

On today's paper, Business Times carried the following article, Kurnia Asia achieves a turnaround

• KURNIA Asia Bhd has achieved a turnaround in underwriting performance with a surplus of RM2.67 million for its first quarter of financial year 2009, after four immediate preceding quarters of consolidated underwriting deficit.
  
  In a statement yesterday, the group attributed the turnaround to a more proactive risk selection strategy as well as to strengthened claims management practices implemented through its Transformation of Operations and Performance (TOP).
  
  “We have successfully turned around our underwriting performance for the first quarter of our new financial year,” said Kurnia Asia executive chairman Tan Sri Kua Sian Kooi.
  
  “It’s a good start to our new financial year and we are back on the right track as a result of strategic business and operational measures put in place,” he said.
  
  For the current quarter under review, the group’s claims expenses was reduced by 10 percent to RM172.87 million compared with the first quarter of the previous financial year.
  
  As such the group’s claims ratio has improved to 68 per cent compared to 75.4 per cent in the previous quarter, Kurnia Asia said.
  
  The group also registered an improvement in its top-line, whereby gross premium income improved by 5.2 per cent to RM282.55 million for the first quarter, up from RM268.52 million in the same quarter of the preceding year.
  
  “However, the group’s improved top-line and underwriting performance were weighed down by our invesment results,” Kua said.
  
  “Though a net loss of RM12.11 million was incurred mainly due to the unfavourable stock market condition, we have taken steps to review our asset allocation in our investment portfolio and have adopted a defensive stance in view of the uncertain market outlook,” he said.
  
  “While our presence in the motor sector will continue to be an important business segment for Kurnia Insurans (Malaysia) Bhd, we are also strategically refocusing our priorities on the motor sector to achieve a 15 per cent non-motor portfolio mix, up from 12 per cent last year,” he added. — Bernama

I got only one word.... HUH?

Yup!

A big HUH to such an article.

What's the bottom line?

Kurnia Asia is still reporting losses and the losses is 12 million and 12 million in losses is still losses!

So how on earth can one consider this a turnaround???

Losing less money is good???

Oh my!