Berjaya Sompo Insurance Bhd, 70 per cent owned by Sompo Holdings (Asia) Pte Ltd, is looking to acquire a competitor.
"We're constantly on a lookout for acquisition targets," said Berjaya Sompo Insurance chief executive officer Tan Sek Kee.
"We wouldn’t close the door (on an opportunity), but we’ll have to look at the timing and pricing. If there are good opportunities, it is something that we will definitely look at," he told reporters today after the launch of 'SOMPO motor' policy.
Tan was responding to a query on Berjaya Sompo Insurance's position, following Bank Negara governor Datuk Nor Shamsiah Mohd Yunus' recent call for insurers to consider synergistic partnerships.
Last week, at the Malaysian Insurance Institute Summit on "Innovation in a Disruptive Era", the central bank advised insurers to consolidate to benefit from economies of scale and to gain a competitive edge.
To another query if Berjaya Sompo Insurance has identified any targets that would make a good fit, Tan replied: "At this point in time, it would be too sensitive to answer that question."
When pressed on the size of Berjaya Sompo Insurance's war chest for potential acquisitions, Tan said money is not an issue as the group's parent Sompo Holdings has deep pockets.
Berjaya Sompo Insurance currently ranks eighth largest in terms of annual gross premium collection, having a network of 20 offices and 2,800 agents nationwide.
On the company’s outlook, Tan noted that this year his team is targeting RM900 million in gross premium collection, an 18 per cent growth from last year's RM765 million.
"This is boosted by today's launch of new motor policy and our long term tie-up with CIMB Group," Tan said.
Earlier this year, Tan said CIMB Group Holdings Bhd and Sompo Holdings (Asia) Pte Ltd launched their bancassurance partnership in Malaysia, whereby CIMB distributes Sompo’s non-life insurance solutions through its distribution network.
This 18-year partnership forms part of the CIMB-Sompo regional partnership arrangement, which also includes Singapore, Indonesia and Thailand.
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