AIA submits evidence to MyCC

KUALA LUMPUR: AIA Bhd, which posted a 23% growth in value of new business (VONB), has submitted its evidence to the Malaysia Competition Commission (MyCC) in relation to MyCC's investigation on the General Insurance Association of Malaysia (PIAM) and its 22 members.
"It is not a very big part of our business, it is a very small part of it and we are one of the smaller players," AIA CEO Anusha Thavarajah told reporters at a media briefing today.
AIA is one of the 22 members of PIAM that was asked to forward evidence to the commission for the alleged infringement of the Competition Act 2010.
To recap, PIAM and its 22 members had entered into an agreement with the Federation of Automobile Workshop Owners' Association of Malaysia (Fawoam), under which the two parties were said to have agreed on discount rates for prices of motor parts as well as the labour rates for vehicles involved in accidents.
MyCC proposed a RM213.45 million fine on PIAM and its 22 members, who have 30 days from the receipt of MyCC's proposed decision to make their representation.
Meanwhile, AIA said its VONB rose 23% to RM815 million last year from RM664 million in 2015, marking four consecutive years of growth.
The company's annualised new premiums grew 25% from RM1.1 billion to RM1.4 billion while operating profit after tax saw a single digit growth of 6% to RM1.1 billion from RM1.04 billion.
"Our consistent track record of year-on-year profitable growth is the direct result of the tremendous growth opportunities present in Malaysia, our diversified and resilient business model and our commitment to building a high quality, sustainable business for the long term," said Anusha.
Over RM4 million were paid in individual claims last year. For 2017, the company remains optimistic about the growth prospects in the life insurance industry.