20 CORPORATE MILESTONES 1962 2010 1962 On 24 May 1962, London and Pacific Insurance Company Limited ( LPICL ) was incorporated as a private limited company. Establishment of 1 st branch in Singapore on 7 August 1962. 1963 On 9 April 1963, LPICL was registered as an approved insurer under the Malaysian Insurance Act, 1963. 1965 LPICL paid its 1 st dividend of 25% tax exempt per ordinary share of RM1.00 each. 1966 LPICL changed its name to London and Pacific Insurance Company Sdn Bhd ( LPICSB ) with effect from 15 April 1966. 1971 LPICSB established another 2 branches in Ipoh (Perak) and Seremban (Negeri Sembilan) on 2 January 1971. 1972 On 2 January 1972, LPICSB established another 3 branches in Johor Bahru (Johor), Melaka and Penang. RM6,000,000 ordinary shares of RM1.00 each from an initial paidup capital of RM1,000,000 in 1963, through 1:2 bonus issue and share allotment. LPICSB was converted into a public company and changed its name to London and Pacific Insurance Company Berhad ( LPICB ) on 30 December 1972. 1973 On 2 January 1973, LPICB established another 2 branches in Kuantan (Pahang) and Kota Kinabalu (Sabah). RM8,000,000 ordinary shares of RM1.00 each through 1:3 rights issue at RM1.00. 1980 The share capital of LPICB increased to RM11,000,000 ordinary shares of RM1.00 each through allotment of 7½% Convertible Preference Shares of RM0.50 each. 1986 Establishment of 9 th branch in Kuching (Sarawak) on 1 September 1986. 1988 Establishment of 10 th branch in Kota Bharu (Kelantan) on 1 March 1988. Establishment of 11 th branch in Alor Setar (Kedah) on 1 June 1988. 1992 RM19,800,000 ordinary shares of RM1.00 each through 4:5 bonus issue. 1993 On 8 January 1993, LPICB was listed on the Second Board of Bursa Securities, then known as the Kuala Lumpur Stock Exchange. 1994 Lonpac, a wholly-owned subsidiary of LPICB, was incorporated on 12 July 1994. RM29,700,000 ordinary shares of RM1.00 each through 1:2 bonus issue. 1996 Establishment of 12 th branch in Miri (Sarawak) on 1 February 1996. On 15 April 1996, LPICB moved its Head Office to Bangunan Public Bank, No. 6, Jalan Sultan Sulaiman, 50000 Kuala Lumpur. The first office since incorporation was in Dataran Kewangan Darul Takaful, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur, then known as UMBC Building. On 15 August 1996, LPICB was appointed by the Ministry of Human Resources to administer an insurance scheme; Foreign Workers Compensation Scheme to provide coverage for industrial accident to foreign workers as provided under Section 26(2) of the Workmen s Compensation Act 1952. Introduction of the 1 st Employees Share Option Scheme ( ESOS ) for staff of LPICB. Implementation of Staff Housing Loan Scheme of LPICB. LPICB crossed the RM30 million mark for the first time with a record pre-tax profit of RM32.6 million. RM53,460,000 ordinary shares of RM1.00 each through 2:5 bonus issue and 2:5 rights issue at RM7.00.
21 1999 RM106,920,000 ordinary shares of RM1.00 each through 1:1 bonus issue. Exercised a rationalisation scheme on 1 May 1999 to transfer the entire insurance business from LPICB to Lonpac. 1997 The listing of LPICB shares was transferred to the Main Market (then known as Main Board) of Bursa Securities on 17 January 1997. Establishment of 13 th branch in Tawau (Sabah) on 1 February 1997. On 15 May 1997, LPICB signed a reinsurance agreement with panel of reinsurers on Foreign Workers Compensation Scheme, witnessed by Dato Lim Ah Lek, Minister of Human Resources. The new Corporate Logo was launched on 22 May 1997 in conjunction with LPICB s 35 th Anniversary. 1998 Malaysian Rating Corporation Berhad ( MARC ) rated the general insurance financial strength rating of Lonpac at AA-. LPICB changed its name to LPI Capital Bhd on 3 May 1999. 2000 Launched Lonpac s corporate website on 30 October 2000. RM107,355,000 ordinary shares of RM1.00 each through ESOS exercise. 2001 RM107,398,000 ordinary shares of RM1.00 each through ESOS exercise. Official launching of Lonpac E-Assist, a complimentary emergency car assistance programme by Dato Chan Kong Choy, Deputy Minister of Finance on 30 October 2001. Launched Motor E-Insurance System for Public Finance on 26 November 2001. The system linked to Jabatan Pengangkutan Jalan ( JPJ ) s system to facilitate the renewal of road tax. 2002 On 7 February 2002, Lonpac celebrated New Business Partnership with NIPPONKOA Insurance Co. Ltd ( NIPPONKOA ), witnessed by Dato Chan Kong Choy, Deputy Minister of Finance. RM118,137,000 ordinary shares of RM1.00 each through subscription of new ordinary shares by NIPPONKOA. Introduction of the 2 nd ESOS for staff of LPI. Set up a Disaster Recovery Centre ( DRC ) in Seremban. 2003 Lonpac established a Complaints Unit in August 2003. Launched Motor E-Insurance System for agents. The system provides the agents with immediate access to up-to-date information on the policyholders. RM120,159,000 ordinary shares of RM1.00 each through ESOS exercise.
22 CORPORATE MILESTONES 1962 2010 (cont d) In October 2003, MARC upgraded Lonpac s financial strength rating from AA- to AA as a result of its strong financial standing and security profile in the insurance industry. 2004 Official opening of Customer Service Centre on 29 July 2004. Official launching of Lonpac Home- Assist, a complimentary referral services on house related difficulties. RM128,901,000 ordinary shares of RM1.00 each through ESOS exercise. 2005 Launching and signing ceremony of Hyundai 24 Hours Assistance between Lonpac and Kah Bintang Auto Sdn Bhd on 25 March 2005. NIPPONKOA s Board meeting and official visit to Lonpac on 26 July 2005. LPI emerged as one of the 7 winners of Malaysian Business Corporate Governance Merit Award 2004 on 11 August 2005. On 11 August 2005, LPI emerged as one of the Top 3 Winners in the Financial Services category of the KPMG Shareholder Value Award 2004. LPI emerged as one of the winners of the Best Under A Billion Award for Asia Pacific Region by Forbes Asia on 10 November 2005. Both LPI and Lonpac were listed in the Malaysia 1000 for year 2004/2005, a directory of Top 1000 Malaysian companies, jointly published by the Companies Commission of Malaysia, Ministry of Domestic Trade and Consumer Affairs and Basis Publications House Sdn Bhd, an associate company of BERNAMA. RM138,723,000 ordinary shares of RM1.00 each through ESOS exercise. LPI Group crossed the RM100 million mark for the first time with a record pre-tax profit of RM103.6 million. 2006 LPI was accorded with the Malaysian Business Corporate Governance Merit Award 2005 on 23 May 2006. Official visit by President of NIPPONKOA, Mr. Ken Matsuzawa on 27 July 2006. LPI won the KPMG Shareholder Value Award 2005, Sectoral Winner under Financial Services category on 5 October 2006. On 30 November 2006, LPI was accorded with the Certificate of Merit in recognition of the Company s annual report having qualified for the final of NACRA 2006. On 7 December 2006, LPI was awarded a Certificate of Finalist in recognition as Finalist of the NAfMA 2006. 2007 On 5 January 2007, Lonpac was selected by the Group Procurement Division of IGB Corporation Berhad ( IGB ) as one of IGB s Top Ten Valued Supplier for 2006 in recognition of Lonpac s performance which met IGB s expected level of satisfaction, demonstration of professionalism at work as well as rendering fullest support with continuous value-added services.
23 On 15 February 2007, Lonpac participated in the Road Safety Campaign in conjunction with the Chinese New Year Festival 2007. LPI was accorded with the Malaysian Business Corporate Governance Merit Award 2006 on 12 July 2007. LPI held 45% interest in an insurance company, named CampuBank Lonpac Insurance Plc, in Cambodia for the purpose of carrying out general insurance business in that country, pursuant to approvals received from Bank Negara Malaysia and the relevant regulatory authorities in Cambodia. LPI won the KPMG Shareholder Value Award 2006, Sectoral Winner under Financial Services category on 1 October 2007. On 1 November 2007, Lonpac was assigned a financial strength rating of A (Excellent) and an issuer credit rating of a by A.M. Best. On 13 December 2007, LPI was awarded a Certificate of Merit of the NAfMA 2007 in recognition of its commendable management accounting practices. 2008 On 5 February 2008, Lonpac was selected as one of IGB s Top Ten Valued Supplier for 2007. Lonpac was awarded the Chubb Multinational Risk Group Outstanding Affiliate Service Award 2007 in recognition of Lonpac s efficient service and continued support of Chubb s Multinational Risk Group. LPI won under the Best Return to Shareholder category and also accorded with the Malaysian Business CIMA Enterprise Governance Merit Awards 2008 on 21 July 2008. LPI won the KPMG Shareholder Value Award 2007, Winner under Financial Services category on 15 August 2008. Established its 14 th branch in Sandakan (Sabah) and 15 th branch in Batu Pahat (Johor) on 15 September 2008. On 30 September 2008, A.M. Best reaffirmed Lonpac s financial strength and issuer credit rating at A (Excellent) and a respectively. Official launching of Southern Region office and Melaka new office on 10 December 2008. 2009 Lonpac won the Chubb Multinational Risk Group Outstanding Affiliate Service Award 2008 on 31 March 2009 in recognition of Lonpac s efficient service and continued support of Chubb s Multinational Risk Group. Established its 16 th branch in Klang (Selangor) on 15 April 2009. Lonpac bagged all the five (5) categories of the Euromoney 2009 awards on 26 May 2009 to claim the overall winner Best Insurer in Malaysia award. The categories are: - Best Insurer for Innovation, Malaysia - Best Insurer for Price, Malaysia - Best Product Range, Malaysia - Best Insurer for Claims Resolution, Malaysia - Best Consultant for Insurance Risk Transfer, Malaysia
24 CORPORATE MILESTONES 1962 2010 (cont d) Established its 17 th branch in Sibu (Sarawak) on 15 June 2009. LPI emerged as the Sectoral Winner under Financial Services category of the KPMG Shareholder Value Award 2008 on 21 August 2009. LPI was also conferred with Winner Financial Services of the same award. On 14 September 2009, A.M. Best reaffirmed Lonpac s financial strength rating of A- (Excellent) and issuer credit rating (ICR) of a-. Euromoney awarded Lonpac the 3 rd Best Insurer Overall by Region Asia beating some of the other larger insurer players in the Asia countries like Japan, China, India and Korea. The Group was admitted as a member to The Edge Billion Ringgit Club and was ranked second under Highest Return on Equity Over 3 Years and Highest Return to Shareholders Over 3 Years under Finance Sector categories. LPI was accorded with the Merit Award of the Malaysian Business CIMA Enterprise Governance Awards 2009 on 6 November 2009. Launched Customer Relationship Management System on 10 November 2009. This system provides a centralised database on customer s needs and transaction profile from first purchase through post sale. On 1 December 2009, LPI was accorded with the Certificate of Merit in recognition of the Company s annual report having qualified for the final of NACRA 2009. On 10 December 2009, LPI was conferred with Most Timely Held Annual General Meeting Award and Distinction Award of the MCG Index 2009 by the MSWG. 2010 Lonpac won the Chubb Multinational Risk Group Outstanding Affiliate Service Award 2009 on 4 January 2010 in recognition of Lonpac s efficient service and continued support of Chubb s Multinational Risk Group. Lonpac along with the Ministry of Transport Malaysia launched a Road Safety Campaign themed Buckle Up, It Is The Law in support of the Government s drive to reduce accidents within inter-city and intra-city roads. The campaign was organised to remind motorists to drive safely and buckle up particularly during the festive period.
25 Lonpac launched I Love The Earth Reduce-Reuse-Recycle Campaign with the aim to promote the green environment awareness among the public in support of the nation call for cleaner and greener world. On 22 September 2010, A.M. Best reaffirmed Lonpac s financial strength rating of A- (Excellent) and issuer credit rating (ICR) of a-. RM221,323,980 ordinary shares of RM1.00 each through 1:2 bonus issue and 1:10 rights issue at RM7.00. LPI acclaimed 3 awards from the Malaysian Business CIMA Enterprise Governance Awards 2010: - Merit Award Overall Winner - 1 st Runner Up Winner Best Return to Shareholders - Merit Award Corporate Social Responsibility LPI emerged as a winner under Financial Services category of the KPMG Shareholder Value Award 2010 on 6 October 2010. Lonpac became the first Malaysian company to win the General Insurance Company of the Year Award at the 14 th Asia Insurance Industry Awards 2010. On 14 December 2010, LPI was conferred with Top Three (Overall) Award, Most Prompt Annual General Meeting Award and Distinction Award of the MCG Index 2010 by the MSWG. On 22 December 2010, Lonpac was conferred as winner of the Hadiah Bahasa Institusi Kewangan 2010 (General Insurance Category) by Dewan Bahasa dan Pustaka. Official visit by Mr. Tee Choon Yeow, Group CEO to NIPPONKOA Head Office in Tokyo, Japan and met the President & CEO of NIPPONKOA Mr. Makoto Hyodo on 21 December 2010.
26 CUSTOMER CARE Great emphasis is placed on customers confidence and satisfaction. Simply because being competitive in introducing a new product alone would not guarantee our long-term success especially when customers have more choices of comparable products at similar prices and value than ever before. In people business, our true triumph will be measured by the number of repeat and loyal customers that we have over the years. Without a customer, a business simply would not exist. The art of keeping loyal customers close to our side simply begins with keeping our promises to care for them to the highest standard. As it has often been said, providing a high level of customer care requires sensitivity towards client s needs and providing the best possible service to keep him coming back is precedence. In the quest to master the art of customer care excellence and to create customer loyalty, we have created our online presence on our new face-lift website at www.lonpac.com/web/my/ask-your-insurer. It serves as a one-stop centre for enquiries where customers may ask and channel any enquiries relating to their policies with Lonpac as well as making enquiries on products and services offered. Customers may send us their comments, suggestions and even notify their claims via this platform. Customers shall receive an acknowledgement receipt of their email right away after sending their enquiries. Our attending staff shall reply to customers concerns soonest possible, within 3 working days. More than just a system, this medium has helped us to keep gathering customers invaluable inputs and gauging how customer service levels in our Company are perceived. We constantly focus and monitor on the progress of our Complaints Unit which has been established in August 2003, as a platform to address, respond and resolve customers issues and complaints. All complaints can either be sent by mail to our department or submitted online at complaint@lonpac.com or www.lonpac.com/web/my/ask-your-insurer. All customers complaints and concerns are attended to by experienced and well-trained staff. The gist of this benchmark is to create a genuine sense of customer care that would make a world of difference to our customers by being a good listener and resolving issues speedily. To complete our development circle, we have fully executed the 2 nd phase of our CRM project on 24 August 2010 in collaboration with other departments. With this in place, all customers personal data and their updated interactions with customer service personnel like requests and communications as well as complaints are tracked and shared in a more structured manner for faster communication between the departments. In February 2010, in collaboration with our CSR team and the Ministry of Transport and Road Safety Department ( JKJR ), we organised a Road Safety Campaign with the theme Buckle Up, It Is The Law, aimed at inculcating road safety awareness and increasing the standard of Malaysian road safety. In promoting this campaign, we have offered RM10,000 FREE Personal Accident Insurance coverage for 1 month (1 February 28 February 2010) to all Malaysian citizens (regardless of occupations). The application forms for the coverage offered have been made available at a few tollgates and also via our website for online registration.
27 Lonpac Home-Assist which was officially launched on 29 July 2004 for our Houseowner and Householder policyholders also remains on the fore. With simple steps to follow, the policyholder will get connected with our service provider to get home assistance when encounter with home inconveniences. The assistance is purely a referral service and ranging from Electrical, Plumbing and Locksmith Assistance, Air-Conditioning & Pest Control Services, Leaking Roof and Cleaning and Restoration of Carpets. Lonpac E-Assist has been growing in strength from year-to-year over the course of the last 10 years since its official launch in October 2001. As at August 2010, Lonpac E-Assist has already reached 171,034 memberships nationwide. In the effort to stay relevant at helping members with prompt services during car breakdown and accident nationwide, we have dedicated 2 E-Assist Helpline numbers starting from February 2010. For our customers who have purchased their motor insurance policies through PBB branches, they may reach us at 1300-88-1138 or 03-2053 5748 for assistance. Should the policy be purchased via Lonpac offices or Lonpac's registered agents, the Helpline numbers for assistance would be 03-7628 3833 or 03-7841 5660. Customer may read more on Lonpac E-Assist online at www.lonpac.com/web/my/about-e-assist-intro. Though it is purely on referral basis, we strongly believe it is equally important in further reinforcing brand relationships with our valued customers. Inspired by our belief that communication is everything in people business where it plays an important role in the process of imparting information, we have been publishing Excite Leaflet for our comprehensive private car insurance policyholders annually since 2002 to keep them abreast of Lonpac s new development. We are steadfast on our commitment to provide and care for our customers with professional services of excellent quality. To this end we will continue to enhance our system to cater for the rapid changes in the market and train our employees to meet these new challenges.
28 LPI CAPITAL IN THE NEWS
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30 TEN-YEAR GROUP FINANCIAL SUMMARY OPERATING RESULTS (RM 000) Operating Revenue Gross Written Premiums Operating Profit Profit Before Taxation Net Profit For The Year KEY STATEMENTS OF FINANCIAL POSITION DATA (RM 000) Total Assets Total Liabilities Share Capital Equity SHARE INFORMATION Per share (sen) Basic Earnings Diluted Earnings Net Dividend Per share (RM) Net Tangible Assets Share Price as at 31 December (RM) Market Capitalisation (RM 000) FINANCIAL RATIOS (%) Profitability Ratios Return on Equity ( ROE ) Return on Assets Operating Margin Net Claims Incurred Productivity Ratios No. of Employees Gross Written Premiums Income per Employee (RM 000) No. of Policies Issued per Employee No. of Claims Settled per Claims Staff Valuation on Share Net Dividend Yield Dividend Payout Ratio Price to Earnings Multiple (times) Price to Book Multiple (times) N1 - The Total Assets and Equity for the years from 2001-2008 were without the effect of FRS 139, Financial Instruments: Recognition and Measurement. N2 - The Basic Earnings Per Share and ROE for the years from 2001-2008 were without the effect of bonus and rights issues during the year 2010. N3 - Based on previous year s average market price N4 - Based on current year s closing market price
31 YEAR ENDED 31 DECEMBER 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 752,073 698,462 638,728 551,624 473,490 434,763 376,856 341,548 292,419 218,577 755,931 675,246 574,444 494,289 424,440 379,768 328,734 321,166 274,150 202,012 180,564 160,407 140,967 121,758 106,637 99,521 74,698 41,317 34,684 29,785 181,307 161,335 141,564 121,766 110,482 103,560 77,498 43,569 36,292 31,063 137,908 126,088 104,247 87,770 78,128 74,703 55,501 35,297 28,443 26,843 2,246,462 1,894,506 856,201 N1 792,389 N1 754,690 N1 716,347 N1 633,439 N1 542,024 N1 488,288 N1 401,283 N1 1,086,220 993,833 492,460 422,388 358,456 326,147 275,563 248,361 219,050 186,406 221,324 138,723 138,723 138,723 138,723 138,723 128,901 120,159 118,137 107,398 1,160,242 900,673 363,741 N1 370,001 N1 396,234 N1 390,200 N1 357,876 N1 293,663 N1 269,238 N1 214,877 N1 63.8 58.8 75.7 N2 63.8 N2 56.6 N2 55.1 N2 44.8 N2 29.6 N2 25.4 N2 25.0 N2 - - - - - - 44.5 29.3 25.2-55.00 67.50 63.45 81.10 76.40 50.40 43.20 18.00 15.00 15.00 5.27 6.54 2.64 2.69 2.87 2.83 2.78 2.44 2.28 2.00 13.18 13.70 9.45 12.10 9.35 8.30 5.90 4.14 3.80 3.00 2,917,050 1,900,505 1,310,932 1,678,548 1,297,060 1,151,401 760,516 497,458 448,921 322,194 11.9 14.0 14.0 N2 23.7 N2 20.0 N2 19.1 N2 15.5 N2 12.0 N2 10.6 N2 12.5 N2 6.1 6.7 12.2 11.1 10.0 10.0 8.8 6.5 5.8 6.7 24.0 23.0 22.1 22.1 23.0 23.0 19.8 12.1 11.9 13.6 47.7 47.1 51.2 51.2 48.5 48.6 54.3 55.3 55.4 54.9 562 543 498 449 426 410 370 345 328 298 1,345 1,244 1,154 1,101 996 926 888 931 836 678 2,134 1,912 1,836 1,473 1,454 1,363 1,268 1,123 1,057 975 1,054 1,036 1,008 1,065 949 1,031 1,156 882 888 898 7.7 N3 6.2 N3 5.8 N3 10.3 N3 9.5 N3 6.1 N4 7.3 N4 4.4 N4 3.9 N4 5.0 N4 87.0 114.8 83.8 127.1 135.0 91.5 97.1 61.4 59.5 60.0 20.7 23.3 12.5 19.0 16.5 15.1 13.2 14.0 15.0 12.0 2.5 2.1 3.6 4.5 3.3 2.9 2.1 1.7 1.7 1.5
32 TEN-YEAR GROUP FINANCIAL SUMMARY 2010 PRODUCTION AND PROFITABILITY 202,012 274,150 321,166 328,734 379,768 424,440 494,289 574,444 675,246 755,931 29,785 34,684 41,317 74,698 99,521 106,637 121,758 140,967 160,407 180,564 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GROSS WRITTEN PREMIUMS (RM 000) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 OPERATING PROFIT (RM 000) 31,063 36,292 43,569 77,498 103,560 110,482 121,766 141,564 161,335 181,307 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PROFIT BEFORE TAXATION (RM 000) STRONG FINANCIAL POSITION GROWTH 401,283 488,288 542,024 633,439 716,347 754,690 792,389 856,201 1,894,506 2,246,462 214,877 269,238 293,663 357,876 900,673 390,200 1,160,242 396,234 370,001 363,741 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 TOTAL ASSETS (RM 000) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EQUITY (RM 000) Note: The Total Assets and Equity for the years from 2001-2008 were without the effect of FRS 139, Financial Instruments: Recognition and Measurement.
33 ENHANCING SHAREHOLDER VALUE 25.0 25.4 29.6 44.8 55.1 56.6 63.8 75.7 58.8 63.8 12.5 10.6 12.0 15.5 19.1 20.0 23.7 14.0 14.0 11.9 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 EARNINGS PER SHARE (SEN) RETURN ON EQUITY (%) Note: The Basic Earnings Per Share and ROE for the years from 2001-2008 were without the effect of bonus and rights issues during the year 2010. 15.0 60.0 15.0 59.5 18.0 61.4 21.6 21.6 97.1 14.4 18.0 18.0 91.5 18.0 40.15 18.25 21.9 40.7 18.5 22.2 41.25 83.8 26.25 41.25 55.0 87.0 135.0 127.1 114.8 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 TOTAL NET DIVIDENDS (SEN) Special Final Interim Dividend payout ratio
34 MARKET CAPITALISATION AND SHARE PRICES Market Capitalisation and Share Prices as at 31 December Share Price (RM) Market Capitalisation (RM) 497,458,000 4.14 760,516,000 5.90 1,151,400,900 1,297,060,050 1,678,548,000 1,310,932,350 1,900,505,100 2,917,050,320 8.30 9.35 9.45 12.10 13.70 13.18 2003 2004 2005 2006 2007 2008 2009 2010
35 LPI SHARE PERFORMANCE IN 2010 Monthly Highest Monthly Lowest 20 18 16 14 12 10 8 SHARE PRICE (RM) 6 4 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 MONTHLY HIGHEST AND LOWEST SHARE PRICE Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Highest 14.30 13.84 13.90 15.04 16.08 15.48 18.00 18.30 12.18 11.92 11.94 13.18 Lowest 13.60 12.82 13.16 13.72 14.68 14.94 15.26 11.68 11.70 11.38 11.28 11.68
36 SEGMENTAL ANALYSIS FOR THE YEAR ENDED 31 DECEMBER 2010 OPERATING REVENUE 10.6% 5.3% 89.4% 94.7% by Geographical Location by Business Segments 0.7% PROFIT BEFORE TAXATION 18.1% 99.3% by Geographical Location by Business Segments 81.9% TOTAL ASSET 9.1% 41.5% 90.9% by Geographical Location 58.5% by Business Segments Malaysia Singapore General Insurance Investment Holding
STATEMENT OF VALUE ADDED 37 Value added is a measure of wealth created by the Group through various business activities. The Statement of Value Added shows the total wealth created and how it was distributed to stakeholders, including the Government, as well as reinvestment for the replacement of assets and further expansion of the business of the Group. Value Added 2010 RM 000 2009 RM 000 Net earned premium 462,510 400,454 Other income 120,369 112,791 Net claims incurred (220,831) (188,707) Other expenses excluding staff costs and depreciation (129,626) (116,719) Share of profit after tax of equity accounted associate 743 928 Value added available for distribution 233,165 208,747 Distribution of Value Added 2010 RM 000 2009 RM 000 To employees : Staff costs 49,139 44,380 To the Government : Tax expense 43,399 35,247 To providers of capital : Dividend paid to shareholders 112,888 92,926 To reinvest in the Group : Depreciation Retained profits 2,719 25,020 3,032 33,162 Total distributed 233,165 208,747 Employees 12% 21% 17% 21% Government Providers of capital Reinvestment in the Group 2010 2009 19% 17% 48% 45%