86
LPI CAPITAL BHD
ANNUAL REPORT 2006
TAN SRI DATO’ SRI DR. TEH HONG PIOW
CHAIRMAN’S REVIEW
87
CHAIRMAN’S REVIEW IT IS MY PLEASURE TO PRESENT ON BEHALF OF THE BOARD OF DIRECTORS, THE ANNUAL REPORT AND THE AUDITED FINANCIAL STATEMENTS OF LPI CAPITAL BHD AND ITS SUBSIDIARIES (“LPI GROUP”) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2006.
88
LPI CAPITAL BHD
ANNUAL REPORT 2006
PERFORMANCE REVIEW I am pleased that the LPI Group’s good run in 2005 has flowed through to 2006. Despite a highly competitive and soft insurance market, the LPI Group surpassed the RM100 million mark for the second consecutive year and registered a pre-tax profit of RM110.5 million, further improving the Group’s Return on Equity (“ROE”) to 20%.
CHAIRMAN’S REVIEW
89
GROWING FINANCIAL STRENGTH For the financial year ended 31 December 2006, the LPI Group registered revenue and pre-tax profit growth of 9% and 6.7% respectively. The Group’s revenue increased to RM473.5 million from RM434.8 million in 2005. Its pre-tax profit rose to RM110.5 million from RM103.6 million in 2005. The Group’s favourable performance was mainly attributable to its wholly owned subsidiary, Lonpac Insurance Bhd (“Lonpac”), which registered an increase of 15.2% in operating profit for the year to RM87.5 million. The strategic business measures undertaken by Lonpac which included prudent underwriting policy and risk management practices had improved its premium income for the year by 11.8% to RM424.4 million. Notwithstanding operating in a very competitive environment, Lonpac was able to record underwriting surplus in all classes of insurance. The total underwriting profit grew significantly by 33.4% to RM59.1 million from RM44.3 million in 2005. STRONG AND HEALTHY BALANCE SHEET As at 31 December 2006, the Group’s balance sheet remained strong and healthy with total assets standing at RM754.7 million, 5.4% higher than 2005 which stood at RM716.3 million. Likewise, the Group’s shareholders’ equity increased to RM396.2 million from RM390.2 million. The Group’s total investment portfolio grew steadily by 5% to RM662.1 million from RM630.5 million in 2005. As at the year-end of 2006, I am pleased that the market value of the
Group’s quoted securities stood at RM427.5 million, an impressive 4.7 times above its book value of RM91.6 million. The Group’s improved performance and share buy-back initiative undertaken during the year to enhance capital efficiency has also improved its earnings per share (“EPS”) from 55.1 sen the previous year to 56.6 sen. INCREASING SOLVENCY MARGIN SURPLUS With a total admitted assets of RM477.5 million as at 31 December 2006, Lonpac registered a higher solvency margin surplus of RM64.2 million (2005: RM54.5 million) above the minimum required margin of RM413.3 million. This has further enhanced Lonpac’s financial standing and security profile in the insurance industry.
90
LPI CAPITAL BHD
ANNUAL REPORT 2006
AWARDS AND RECOGNITIONS The LPI Group has continued to pursue excellence in financial and management practices to enhance long-term shareholder value and good corporate governance. Such commitment has been duly recognised during the year with the conferment of the following: •
For superior shareholder value – KPMG Shareholder Value Award 2005 – Sectoral Winner in Financial Services Category for the second consecutive year
•
For corporate governance – Malaysian Business Corporate Governance Merit Award 2005 for the second consecutive year
•
For outstanding annual reporting – National Annual Corporate Reporting Awards (NACRA) 2006 Certificate of Merit
•
For best management accounting practices – National Award for Management Accounting (NAfMA) 2006 Certificate of Finalist
Such accolades will certainly spur the Group to strive harder in its quest for excellence and enhance its shareholder value.
CHAIRMAN’S REVIEW
91
BUSINESS DEVELOPMENT The global insurance market continues to be soft with declining premium rates. With the impending market liberalisation and resultant competition, the insurance industry is faced with a great challenge to sustain growth. I am however confident that the LPI Group guided by its Corporate Mission, “To provide customers with excellent products and services of international standard backed by proven technical and financial strength” will successfully brave through such challenges. The Group will continue to focus on further strengthening its major operations in the area of business development, delivery systems, underwriting skill, claims management, financial and management accounting and customer service. Priority will be given to premium growth through further expansion of the Company’s agency force and sales & marketing team, maximising business potential with strategic partners and increasing premium production through selected brokers. Continuous training and development of staff and agents will be provided to enhance their technical competency and professional skills to increase our competitive edge. Lonpac is amongst the top insurers in underwriting specialised liability classes of insurance like, Director & Officer policy, Professional Indemnity and Errors & Omissions insurance. Lonpac will continue to develop further in this class of insurance including repackaging products like Business Travellers and Personal Travellers to cater to the changing needs of today’s travellers. To stay ahead of the competition, Lonpac is committed to “Caring for our customers” by providing the highest level of customer service. In addition to existing Customer Loyalty programmes like Lonpac E-Assist and Lonpac Home-Assist, Lonpac will continue to develop new customer care programmes, like the promotion of anti-motor theft device to counter the escalating motor claims cost arising from theft. Such customer care programme will certainly eliminate significantly the burden of the insured in the event of motor theft as the stolen vehicle can be easily tracked and recovered. Continuous efforts will also be channelled to upgrade the customer service standard for existing and potential clients.
In 2006, Lonpac has undertaken several IT initiatives to upgrade the quality of its Information and Communication Technology (“ICT”) for better efficiency in its business processes and delivery system. Lonpac successfully implemented its e-Commerce systems that encompass the motor and non-motor classes of insurance and will continue to improve on its e-Commerce platform to cater for the fast changing business landscape. The Printing Management Solution system was also implemented during the year to centrally print our standard policy documents for documentation and quality processing efficiency. This has resulted in optimising staff productivity and cost efficiency.
92
LPI CAPITAL BHD
ANNUAL REPORT 2006
PROSPECTS
DIVIDENDS
The Malaysian economy remained resilient in 2006 amidst persistently high oil prices, inflationary pressures and rising global interest rates. These challenges are expected to continue in 2007. Nonetheless, the Malaysian economy is expected to strengthen in 2007 given the Government’s continuous efforts in implementing proactive policies to sustain economic growth. The implementation of the Ninth Malaysia Plan (“9MP”) is also expected to boost the country’s economic growth momentum.
The LPI Group is committed to enhancing shareholders’ value which is amply demonstrated in the past years with its consistent high dividend payout policy. During the year under review, an interim dividend of 25 sen per share less 28% taxation amounting to RM24.9 million was paid in August 2006. For the financial year ended 31 December 2006, I am pleased to announce the Board’s recommendation of a Special Dividend of 25 sen per share less 27% taxation and a Final Dividend of 55 sen per share less 27% taxation amounting to RM80.5 million, subject to approval from the shareholders at the Annual General Meeting on 31 January 2007. The total dividend declared for the year 2006 amounts to 105 sen per share, representing an increase of 50% over 2005’s dividend of 70 sen per share. The total dividend to be paid for the year (inclusive of interim dividend paid) would amount to RM105.4 million, the highest dividend payment in the past years.
The insurance industry is poised to grow in tandem with the economy. Development projects under the 9MP will benefit the insurance industry with the expected increase for property and liability insurance. Prospects for the LPI Group for the year 2007 therefore remain bright. I am pleased to announce that Lonpac’s general insurance strength rating has been reaffirmed at “AA” by The Malaysian Rating Corporation Bhd (“MARC”) in September 2006, reconfirming once again our financial stability and reliability in the insurance industry. The “AA” rating reflects Lonpac’s well-diversified business mix, excellent underwriting performance, disciplined underwriting, prudent claims reserving practices and high quality investment portfolio. Lonpac has successfully renewed its treaty reinsurance arrangement for the next underwriting year 2007 well before the close of 2006 reflecting the trust and support of its treaty reinsurers. With its extensive distribution network, good track record, prudent underwriting policy and exemplary management practices, the LPI Group can expect to enjoy significant growth in the year ahead. The Group is also well positioned to meet the many challenges despite operating in a highly competitive business environment and is confident to achieve yet another year of positive results for 2007.
The strong dividend of RM1.05 would provide a gross and net dividend yield of approximately 13.1% and 9.6% respectively based on the previous year’s average market price. Such high dividend payout is part of LPI’s endeavour to reward our loyal shareholders. This, the Board believes, would place LPI as one of the superior dividend-paying counters on Bursa Securities.
CHAIRMAN’S REVIEW
ACKNOWLEDGEMENT I would like to take this opportunity to thank my fellow directors for their constant support and invaluable contribution. On behalf of the Board of Directors, management and staff, I would like to convey our deepest appreciation and thanks to all our valued agents, brokers, reinsurers, policyholders and other business associates who have contributed positively to our growth and success as well as for their relentless support, confidence and trust. We look forward to our continuing successful partnership for the year ahead. The Board and management would also like to thank Bank Negara Malaysia and other relevant Regulatory Authorities for their guidance and advice. To the management and staff, I express my heartfelt gratitude for your commendable and dedicated performance, team spirit, diligence, loyalty, whole-hearted commitment towards the continuing growth of the Group. I am confident that together, we can achieve yet another year of growth and success for the LPI Group.
TAN SRI DATO’ SRI DR. TEH HONG PIOW Chairman 3 January 2007
93
94
LPI CAPITAL BHD
ANNUAL REPORT 2006
CORPORATE PHILOSOPHY RESPONSIBILITY TO... OUR INSURED OUR EMPLOYEES OUR SHAREHOLDERS
CORPORATE PHILOSOPHY
95
RESPONSIBILITY TO OUR INSURED Governed by its corporate mission, “To provide customers with excellent products and services of international standard backed by proven technical and financial strength in line with the Financial Sector Master Plan”, LPI Group has been committed in its ongoing pursuit for customer quality service. As a responsible insurer, the Group offers a wide-ranged of innovative insurance products that are commercially and economically viable to meet the changing needs of customers backed by highly trained service personnels to deliver excellent services. The Group has invested in several initiatives to provide value added products and quality service, which included the setting up of central processing centre and customer service centre for speedy delivering of policies and also to improve before and after sales service. The customer service centre as a one-stop centre for handling the insurance needs of our customers has been operating successfully since 2004. As an appreciation to our customers, the Group offers complimentary value added services via the Lonpac E-Assist for its comprehensive private car insurance policyholders. The carefully planned and designed Lonpac E-Assist offers a wide scope of value added services ranging from 24-hour minor roadside repairs and emergency towing services, car rental referral services and arrangement for hotel accommodation in the event of cars breakdown or accident. The Group also offers Lonpac Home-Assist, referral services to its householder and houseowner policyholders ranging from electrical, plumbing and locksmith assistance, air-conditioning and pest control services, leaking roof and cleaning and restoration of carpets.
The global trend of using Internet as a delivery channel has gained increasing prominence in business community in recent years. With the impending market liberalisation, the Group has prepared itself to meet all these challenges by moving forward in upgrading its IT infrastructure. Amongst the IT enhancements carried out was the exclusive website to promote the Group’s products and services virtually in an efficient and cost effective manner as well as to further improve customer care and productivity. It is the Group’s strategy to provide customers with an easy access to the information and responsive services. The website is being constantly updated with the latest news on products and services, current insurance market issues and other insurance related information. The website also serves as a platform for enquiries, feedbacks and complaints on the services provided. Looking ahead, the Group will continue to embark on long-term customer retention programmes and also constantly upgrading its customer service standard.
96
LPI CAPITAL BHD
ANNUAL REPORT 2006
RESPONSIBILITY TO OUR EMPLOYEES The Group believes that human capital, as a strategic resource, should be nurtured and enhanced with adequate and relevant skills development to meet the impending market liberalisation. Besides the attractive staff remuneration and fringe benefits, the Group continues to undertake activities with the objective to promote the overall well being of its employees.
97
CORPORATE PHILOSOPHY
SERVICE RECOGNITION AWARDS The Group compliments its long servicing staff through the yearly presentation of Service Recognition Awards since 2001, with the primary objectives of motivating staff to develop their career with the Group and rewarding them for their dedicated and whole-hearted commitments towards the development and growth of the Group. A total of 192 staff received the Service Recognition Awards since 2001 with a number of staff receiving more than once throughout their career with the Group. This indicates the trust and loyalty of the staff for the Group and their total confidence in the leadership of our Chairman, Tan Sri Dato’ Sri Dr. Teh. The number of the Service Recognition Awards recipients since year 2001 to year 2006 are as depicted below: Numbers of Recipients Years of Service
2001
2002
2003
2004
2005
2006
30 years
–
–
10
4
3
3
25 years
21
3
2
–
–
5
20 years
7
6
5
5
2
1
15 years
13
2
4
–
2
3
10 years*
–
23
16
26
9
17
41
34
37
35
16
29
Total
* 10-year Service Award category was granted commencing from year 2002 onwards.
The Group is proud and honoured to witness the loyalty and perseverance of its staff, some who have been with the Group for as long as 30 years. Their unwavering dedication and whole-hearted commitment has contributed to the progress of the Group and also inspires their colleagues, who are younger in service.
98
LPI CAPITAL BHD
ANNUAL REPORT 2006
STAFF ACTIVITIES The Group organised many get-along activities for its staff with the objectives of strengthening the bonds among staff and to create team spirit for staff to meet and interact with each other outside the normal working hours. Established in 1983, Lonpac Sports Club (“Sports Club”) aimed to provide sports and leisure activities for its members. The Sports Club is proud to have the Managing Director/ Chief Executive Officer as the Sports Club’s President who is elected by the members at the Sports Club Annual General Meeting. The Sports Club’s office bearers i.e. President, Vice President, Secretary, Committees, Treasurer and Auditors are nominated and elected by the members on a yearly basis at the Sports Club’s Annual General Meeting with the objectives to encourage members’ participation and instil transparent management of the Sports Club’s organisation. The Sports Club actively organises sports and leisure activities for its members throughout the year. The Sports Club subsidised an overseas and a local trips for its members every year. In addition to the trips, the Sports Club also organised sporting events to promote a healthy lifestyle among its members. This would include badminton, netball, table tennis and bowling. The Sports Club also organised few indoor games such as scrabble, carom and darts. Lonpac has also established its very own football team, recognising football as one of the famous sports in Malaysia. The team practises regularly and held friendly matches with teams from other insurance companies, banks and other organisations. In year 2006, the football team represented the Company in few tournaments including Basis Bay Inter–Insurance Futsal Competition. Lonpac also took part in the Great Eastern Inter-Insurance Netball and Football Competition 2006.
The Group perceives itself as one Big Family with a total staff force of more than 400 people. To instil good family values among the families of its staff, Lonpac organised Family Day gathering annually. The gathering creates opportunities for the staff and their families to interact with other families during the activities that include telematch games, kids games and kids show. The highlight of the staff calendar of events during the year was the Anniversary Dinner & Dance where the Company shows its appreciation to its entire staff for their unwavering commitment and its agents and business associates for their relentless support throughout the year. All these activities are expected to promote stronger bond among the staff and unite all staff as one.
CORPORATE PHILOSOPHY
99
SAFETY AND HEALTH POLICY It is the policy of the Group to provide conducive working conditions that promote safety and good health to its employees. The Group ensures that all work performed in the offices are conducted using safe work practices, free from potential occupational hazards and in compliance with the Occupational Safety and Health Act, 1994. Hence, the Group has adopted an Occupational Safety and Health (“OSH”) Policy in accordance with the Occupational Safety and Health Act, 1994 with the objective of promoting a safe and healthy working environment as well as preventing any potential occupational hazards. The OSH Policy outlines the responsibilities of the Group to ensure the safety, health and welfare at work of all its employees. On the other hand, the duties of every employee in relation to safety and health were also stated in the OSH Policy. Good health is the ultimate pre-requisite in one’s life. Though there are numerous insurance products to provide financial aids due to medical conditions, nobody is willing to suffer such physical disability that renders loss of manpower hours and quality time for their employer and family respectively. Like the saying, “To Prevent Is Better Than To Cure”, the Group believes that a healthy body and mind would produce high productivity and outstanding results. Hence, the Group promotes a healthy lifestyle through the numerous sports activities organised by the Sports Club. During the year, the Group has also organised a health talk on Depression/ Stroke/ Chronic Illness Prevention presented by a research centre. The 30-minute health talk reminded the staff on the importance of keeping a well-balanced diet as well as living a healthy lifestyle in order to avoid unfavourable medical conditions. In addition to health, the Group also deems the significance of safety issues among staff at workplace. In line with the building security policy, the Group has imposed a “Non-Smoking Area” policy in all its office premises. Other than to eliminate fire hazard risk, the policy also aims at discouraging staff from smoking.
At the Head Office, a fire warden and an assistant fire warden were appointed for each floor that the Group occupies. These fire wardens are guided by the building security officers to react upon emergency situations including fire and bomb threat. The fire wardens are trained to lead their colleagues on the building evacuation procedures in case of such emergency. The Group has also been very participative in numerous fire drills conducted by the building security division in collaboration with the Fire and Rescue Department of Malaysia. During the year, the Group’s fire wardens have organised a Safety Awareness Talk that was presented by a non-profit organisation, Public Fire Safety and Education Centre. A demonstration on the appropriate use of fire extinguisher was included in the talk to ensure that all employees are trained to use the fire extinguisher. The Group would continue with its efforts to promote the essential of safety and health within its human capital from time to time. MEDICAL BENEFITS The Group also covers Group “All Benefits” Personal Accident and Group Hospital & Surgical insurances for all its employees to compensate or provide financial aid to the employees or their families in case of accident or illness. The insurance coverage is sufficient to help ease the financial burden of the employees due to the increasing medical expenses. Medical benefits in terms of medical cost reimbursements are also extended to employees’ spouse and children subject to a maximum limit per annum. In order to promote health awareness, the Group bears the cost of various medical check-up benefits for its staff in accordance with the Staff Benefits Handbook. The medical check-up includes blood test for general screening, papsmear test, mammogramm test and health screening at the Institut Jantung Negara.
100
LPI CAPITAL BHD
ANNUAL REPORT 2006
RESPONSIBILITY TO OUR SHAREHOLDERS The Group’s consistent financial performance as reflected in the heady growth-and-profitability figures and exceptional corporate governance practices, together with managerial and entrepreneurial savvy of the Group’s top executives are the key factors driving healthy returns to shareholders and enhancement of long-term shareholders’ value. The Annual General Meeting (“AGM”) of LPI Capital Bhd, chaired by our Chairman, Tan Sri Dato’ Sri Dr. Teh Hong Piow, is an open and transparent platform where shareholders are given the opportunities to express their views on the performance of the LPI Group. Adequate time would be allocated for the shareholders to query and seek clarification on certain issues pertaining to the performance of the Group. In 2006, approximately 200 shareholders and proxy holders attended the 45th AGM of LPI Capital Bhd including the Chief Executive Officer of Minority Shareholder Watchdog Group (“MSWG”). The number of shareholders attending the AGM has been increasing over the years.
CORPORATE PHILOSOPHY
101
LPI has been consistent in its dividend policy since listed in 1993. The dividend per share paid by LPI since 1993 is depicted below :-
The Malaysian Business accorded LPI’s excellent corporate governance practices with the award of the Malaysian Business Corporate Governance Merit Award 2005 for the second consecutive year. LPI Capital has also won the KPMG Shareholder Value Award 2005 for the second consecutive year, enhancing its position as the Financial Services Sectoral Winner among all listed companies in Bursa Securities. In addition, LPI was accorded with the Certificate of Merit of the National Annual Corporate Report Awards (NACRA) 2006, recognising the Group’s efforts to produce timely, informative, factual and reader-friendly annual report as well as high standards of corporate governance to its shareholders. As part of the Group’s commitment to deliver excellent shareholders’ return, LPI paid a strong dividend of 70 sen less 28% taxation per share. The total dividend paid was RM69.4 million for the financial year ended 31 December 2005. It was the highest dividend payment in the past years.
Year
Dividend per share (sen)
2005
70.0
2004
60.0
2003
25.0
2002
15.0*
2001
15.0*
2000
15.0*
1999
12.5*
1998
27.5
1997
40.0
1996
40.0
1995
30.0
1994
25.0
1993
18.0
*Tax Exempt
102
LPI CAPITAL BHD
ANNUAL REPORT 2006
CORPORATE SOCIAL RESPONSIBILITY In today’s business environment, there is an increasing awareness to include corporate social responsibility (“CSR”) as an integral part of a business’ mainstream operations and practices. CSR is perceived as a key to sustainability as it is an open and transparent business practices that are based on ethical values and respect for the community, employees, the environment, shareholders and other stakeholders. The Board of LPI Group acknowledges the importance of CSR and views CSR as an extension of the Group’s efforts in fostering a strong corporate governance culture. Ultimately, both corporate governance and CSR would ensure the sustainability of business via good business practices as both influence corporate strategy and draw on the same elements of accountability, honesty, transparency and sustainability. Towards this end, LPI Group has always fully subscribed to the CSR practices and is in line with the CSR Framework launched by Bursa Malaysia. The Board also believes that CSR is a good business proposition of which the LPI Group would have better reputation, brand value, sales and customer loyalty. Thus, these positive attributes would enhance long-term shareholder value. The LPI Group emphasises CSR on four (4) focal areas as follows:
COMMUNITY
MARKETPLACE
To be socially responsible to the society at large and play a role as a caring corporate citizen.
To be socially responsible in the economic boundaries it operates through exemplary corporate governance practices.
WORKPLACE
ENVIRONMENT
To be socially responsible to its employees by providing a conducive working environment including on matters pertaining to health and safety at workplace, developing its human capital and observing the rights of its employees.
To be socially responsible and play a role in preserving the environment.
CORPORATE SOCIAL RESPONSIBILITY
103
THE BOARD BELIEVES THESE POSITIVE ATTRIBUTES WOULD ENHANCE LONG-TERM STAKEHOLDER VALUE. COMMUNITY
WORKPLACE
The Group plays its role as a socially responsible corporate citizen in the community through donations and sponsors to the children with special needs association, orphanage and old folks home. The Group has also participated in the sponsors and contributions to healthcare, sports and education development funds. The Group has also been hiring fresh graduates for the available positions to create job opportunities as a mean to help the government in reducing unemployment.
The Group is also committed in its social responsibilities at the workplace. Continuous learning and development programmes were carried out throughout the year to develop its human capital. Upward mobility of staff is encouraged and staff welfare was also closely monitored to avoid any violation to Labour or Human Rights. In addition, the Group also emphasised on the health and safety aspects at the workplace by setting up a Occupational Safety and Health Committee that oversees the safety, health and welfare at work for all employees. Talks on health and safety issues were conducted as well as disseminating information to all staff on these topics from time to time.
MARKETPLACE At the marketplace, the Group maintains high integrity of corporate governance practices as well as enhancing the shareholders’ value through strategic business planning and exceptional management accounting practices. In achieving its corporate goals, the Group will not compromise the business ethical values. The Group’s efforts as a socially responsible corporate citizen were evident in the awards and recognition accorded to LPI. LPI has won the Malaysian Business Corporate Governance Merit Award 2005 and KPMG Shareholder Value Award 2005 for second consecutive year. LPI was also conferred with the Certificate of Merit of the National Annual Corporate Report Awards (NACRA) 2006, recognising the Group’s excellence in annual corporate reporting through the publication of timely, informative, factual and reader-friendly annual report as well as high standards of corporate governance. LPI was also a finalist of the National Award for Management Accounting (NAfMA) 2006, a recognition for its exemplary management accounting practices including its CSR practices.
ENVIRONMENT As an environmental socially responsible corporate citizen, the Group took several initiatives in preserving the environment including reducing the usage of papers and recycling the waste as well as contributing through donations to the environmental programmes.
104
LPI CAPITAL BHD
ANNUAL REPORT 2006
THE GROUP’S INITIATIVES IN SUPPORTING CSR WILL BE AN ON-GOING COMMITMENT AND IN YEAR 2006, THE GROUP HAS ALSO PARTICIPATED IN THE FOLLOWING ACTIVITIES:
SAFETY CAMPAIGN
ENVIRONMENTAL
•
Contributed towards Road Safety Campaign organised by Besraya (M) Sdn Bhd in conjunction with Chinese New Year Celebration 2006.
•
Contributed towards Labour Day Assembly 2006 at Putra Stadium, National Sports Complex, Bukit Jalil.
•
Sponsored the Road Safety Campaign organised by Malaysian Chinese Association in conjunction with the Chinese New Year Celebration 2006.
•
Contributed towards the 3rd Insurance Industry Walk “Love And Cherish Our Environment – Protect Them” 2006.
HEALTHCARE •
Contributed towards University Hospital.
WORKPLACE Thalassemia
Society
of
EDUCATION • •
Contributed towards Education Foundation.
Madam
Au
•
Organised a health talk on Depression/ Stroke/ Chronic Illness Prevention presented by a research centre.
•
Imposed a “Non-Smoking Area” policy in all Group’s office premises.
•
Organised a Safety Awareness Talk, presented by Public Fire Safety and Education Centre.
•
Disseminated information to employees.
•
A First Aid Kit box are allocated at the Group’s Head Office and branches.
Yong’s
Contributed towards Lourdes Community Centre/ La Salle Kindergarten.
on
“Haze
Hazard”
CORPORATE SOCIAL RESPONSIBILITY
SPORT •
Sponsored the 7th Sarawak Chief Minister’s Cup ITF World Junior Tennis Championship held in February and March 2006.
•
Contributed towards Harimau Boy Baseball Club.
•
Sponsored the Students’ Golf.
•
Sponsored the Junior Davis Cup 2006 – Asia Oceania Qualifying Event.
•
Sponsored the 8th Sarawak Chief Minister’s Cup ITF World Junior Tennis Championship held in September 2006.
Seremban
Chung
Hua
Old
•
Contributed towards Labour Department’s Golf Tournament.
•
Contributed towards “Osmotrade Football Club”.
•
Sponsored the Junior Programme under Tennis Association.
The Board also believes that the initiatives of CSR should begin in the Group itself. The needs of staff should not be overlooked whilst the Group carried out the CSR activities. As such, the Group views that by taking care of its staff it will also contribute positively towards the harmony of the society as a whole. Other than rewarding performance through competitive remuneration packages the staff also benefited from various staff activities. Throughout the year, the Group organised many get-along activities for its staff with the objectives of strengthening the bonds among staff and to create team spirit for staff to meet and interact with each other outside the normal working hours. All these activities are expected to promote stronger bond among the staff and unite all staff as one. The Group also aims at making a difference through CSR for the staff and society as a whole.
Tennis Development Sarawak Lawn
COMMUNITY •
Contributed towards Istimewa, Hulu Langat.
Persatuan
•
Contributed towards SP Setia Foundation Charity Dinner 2006.
•
Contributed towards Yayasan Nanyang “Together We Care” Charity Dinner 2006.
•
Conducted a community activities at Rumah Hope, Petaling Jaya and contributed towards the orphanage home.
•
Contributed towards Temple’s Dinner.
•
Contributed towards The Kuala Lumpur Girl Guides Association Gala Dinner.
Sing
Kanak-Kanak
Ann
105
Press Visit to Persatuan Kanak-Kanak Istimewa, Hulu Langat.
Keong
Visit to Rumah Hope (Orphanage Home), Petaling Jaya.
106
LPI CAPITAL BHD
ANNUAL REPORT 2006
BUSINESS OPERATIONS REVIEW THE BUSINESS OPERATIONS REVIEW IS FOCUSED ON LONPAC’S GENERAL INSURANCE OPERATIONS, NAMELY UNDERWRITING, BUSINESS DEVELOPMENT, CLAIMS AND INFORMATION AND COMMUNICATION TECHNOLOGY. The LPI Group’s revenue generated mainly from its insurance subsidiary, Lonpac Insurance Bhd (“Lonpac”). The business operations review is focused on Lonpac’s general insurance operations, namely Underwriting, Business Development, Claims and Information and Communication Technology. During the year under review, Lonpac continued to implement effective business measures in accordance with the Business Plan and strengthened its underwriting policy, financial management, claims management and risk management practices as well as enhanced its information and communication technology to improve its business processes.
Notwithstanding the tough market conditions where business competition is increasing with lower premium rates for non-tariff classes and higher cost of reinsurance, Lonpac was able to brace through the challenges and achieved outstanding performance. Lonpac’s revenue grew by 10.6% to RM450.0 million from RM406.8 million in 2005 whilst its underwriting profit and pre-tax profit surged by 33.4% to RM59.1 million and by 15.2% to RM87.5 million respectively. This is a reflection on the efforts and commitment of the Board, Management and staff towards the implementation of key business strategies in tandem with the Group’s corporate mission. With Lonpac’s growing financial stability and reliability within the insurance industry, the Board and Management are confident to face the challenges ahead and will continue to implement strategies to strengthen our business resilience amidst the competitive environment.
BUSINESS OPERATIONS REVIEW
107
UNDERWRITING Year 2006 continued to be very challenging for the underwriters where the underlying premium rates of most non-tariff insurance classes still remained low. The introduction of five new Takaful operators further crowded the already fragmented market. Despite the challenging market environment, Lonpac continues to exercise prudent and selective underwriting policies. Risks with inadequate pricing would be declined as technical underwriting is emphasised rather than the market share in premium income. Latest risk management and loss control techniques and methodologies were introduced by our risk engineers to further enhance value to our corporate customers. Lonpac continues to leverage the use of technology in the underwriting processing systems as its competitive advantage. Lonpac believes that processing efficiency is important to ensure customers’ satisfaction and reducing business cost. The existing e-Insurance systems are further expanded to include Personal Accident class following the success of Motor and Marine e-Insurance systems. During the year, we implemented Printing Management Solution (“PMS”) system with the objective of enhancing documentation processing efficiency and print quality. Standard policy documents are centrally printed in which branches’ printing processes are significantly reduced to only ad-hoc printing job. This has resulted in better allocation of the resources at Head Office and branches that lead to a much more rapid and quality processing, enhanced customer services and considerable cost savings.
Reinsurance protection continues to play significant role in ensuring the organisation’s overall risk exposures. Risks are carefully spread among financially strong reinsurance providers. The well crafted treaty placement enables Lonpac to introduce more innovative and competitive products such as specialised liability insurance coverage and terrorism protection programme.
BUSINESS DEVELOPMENT The business development in Lonpac is carried out by three (3) departments, namely Agency, Financial Institution and Broking. Several business development initiatives were successfully implemented in 2006 to tap into new markets and also strengthened the agency force for long-term sustainability and profitability. Greater efforts would be directed towards providing value added and innovative insurance products and also promoting premium productivity to gain competitive advantage in view of the impending globalisation.
108
LPI CAPITAL BHD
ANNUAL REPORT 2006
AGENCY The Agency force continued to be the main distribution channel contributing 35% of Lonpac’s total gross premium in 2006, a growth by 23% as compared to the previous year. The contribution by the agency force was commendable in view of the stiff competition in a soft market environment. The improved performance in 2006 was mainly due to the continuous and strong support from our agency force as a result of our excellence in delivering channel, quality insurance products and services and our reliability.
During the Agency Seminar on Marketing Skills – “Emotional Selling”, the agents were guided to apply emotional intelligence to the art of selling. The main seminar objectives were on motivation to increase sales performance, applying Emotional Intelligence Quotient (“EQ”) competencies to the art of selling as well as understanding and capitalising on the emotion of buying and selling.
In 2006, the agency force grew by 8.2% to 923 agents from 853 agents in 2005. At Lonpac, we will continue our objective of increasing market share by developing and building good long-term business relationships with existing agents and also actively encourage recruitment of new potential agents. Towards this end, training courses were organised and conducted regularly by insurance professionals to help improve the marketing and technical skills on a wide range of insurance products with the view to help agents compete professionally with other aggressive intermediaries from other conventional insurers and Takaful licensed operators in this current soft market environment. The seminars organised for the agents in 2006 were as follows: • Agency Seminar on Product Liability Insurance • Agency Seminar on Liability Insurance for Singapore Agents • Agency Seminar 2006 on Marketing Skills – “Emotional Selling”
Agency Seminar on Liability Insurance for Singapore Agents
The Agency Seminar on Changing Mindset for Peak Performance Selling was held with the objectives of training the agents on developing strategies on new customers, retaining customers and cross selling. The seminar also exposed the agents to understanding sales psychology on selling and buying behaviour, changing the mindset, sustaining behaviour change and performance as well as developing personalised selling blueprint.
• Agency Seminar 2006 on Changing Mindset for Peak Performance Selling • Agency Seminar on Directors’ and Officers’ Liability Insurance • Agency Seminar on Motor Insurance • Agency Training on e-Claims Enquiry • Agency Seminar on Foreign Workers Insurance
Agency Seminar 2006 on Marketing Skills – “Emotional Selling”
BUSINESS OPERATIONS REVIEW
109
Agency Training on e-Claims Enquiry
Agency Seminar on Foreign Workers Insurance
Through these continuing training programmes, agents from different geographical locations are gathered and provided with an avenue to exchange ideas on the marketing strategies to improve productivity.
Looking forward, the Agency department will continue to focus on providing good quality services, new insurance products and trainings to existing agents and corporate clients. It would also recruit more experienced agents with profitable and balanced business portfolio. Agents are also encouraged to transact a wider and balance portfolio of insurance businesses for long-term sustainable purposes. The Agency department will also embark on ‘work-site’ marketing at corporate clients’ offices to tap on their staff’s personal-line insurances. This is part of our corporate social responsibility to reach out and assist them on protecting their interests and loved ones against any incurred losses.
In recognition of high premium producing agents, Lonpac launched an elite ‘Master Club’ in 2006 for agents that produced over RM1 million premium of profitable and balanced business portfolio. There were 16 qualified members in 2006 and the number is expected to grow in the near future in view of the encouraging growth of premium from agency force. The strategic alliance with Public Bank Berhad (PBB) initiated last year to tap into motor insurance business from car dealers and major motor franchise holders have been successful. Lonpac was appointed as panel insurer for many motor franchise holders such as Proton Edar, Naza Group, Kah Bintang and Tan Chong Motors. This boosted the Agency department’s motor premium income and resulted in an impressive premium growth by 38% to RM64.4 million from RM46.6 million in 2005. Lonpac’s principle of providing good quality products and services to agents and policyholders alike assisted by the efficient agency administration support unit have developed more good residential and property risks from many renowned property development and estates management clients.
Master Club
110
LPI CAPITAL BHD
ANNUAL REPORT 2006
TOP PERFORMING AGENT RECOGNITION AWARD 2005 The award is to give recognition to our agents for their relentless support and positive contribution towards Lonpac’s business growth. Agents are assessed based on certain selection criteria, like production of premium, good track record on payment and satisfactory claims ratio on their respective business portfolio. The top three (3) agents were accorded with the Top Performing Agent Recognition Award 2005.
Saratim Insurance Agency Services Sdn Bhd
Saviour Products (M) Sdn Bhd
Innorisk Sdn Bhd
BUSINESS OPERATIONS REVIEW
111
FINANCIAL INSTITUTION The portfolio of Financial Institution, primarily from the PBB Group has once again provided a healthy portfolio mix of insurance classes that contributed 29% of the total gross premium income.
Institution and are expected to continue into 2007. In addition, Lonpac has also participated in the Islamic Mortgage Reducing Personal Accident (“MRPA”) Family Product of one of the Takaful Operators in 2006.
Fire and Motor class of insurance remained the major source of income in 2006 as a result of the joint marketing initiatives with PBB, particularly the setting up of Call Centre for motor insurance telemarketing. With the competitive hire purchase terms offered by PBB, motor insurance support from motor franchise dealers and car dealers remained strong. All these initiatives were effective and attributed positively to the significant increase in the motor gross premium to RM55.3 million from RM49.1 million registered in 2005. The Mortgage Reducing Personal Accident (“MRPA”) insurance product was also highly marketable and well received by the PBB’s conventional loan customers. Since its first launch in 2000, MRPA has continued to produce good underwriting results.
The e-Insurance Marine system was extended to PBB’s branches in the Klang Valley during the year following the successful implementation of e-Insurance Motor and Fire systems. With these online systems in place, Lonpac is able to strengthen its market share and further tap into PBB’s wide distribution network and customers base. Concerted efforts would be carried out to enhance our delivery system and insurance products.
With the setting up of PBB Islamic subsidiary in 2006 that undertakes the Islamic banking and financing business, Lonpac foresees higher growth in view of the progressive implementation of the Financial Sector Master Plan which accords higher priority to the development of Islamic banking and financing both in Malaysia and internationally. Lonpac’s strategic alliances with several leading Takaful Operators since 2005 to participate in the Takaful Insurance of PBB have contributed positively to the portfolio of Financial
112
LPI CAPITAL BHD
ANNUAL REPORT 2006
BROKING The Broking department contributed 12% of Lonpac’s total gross premium production in 2006. The soft insurance market environment continued in 2006. Severe competition from some conventional insurers aimed at top-line premium growth and new Takaful licensed operators targeted for market share on good profitable risks with creative and attractive profit-sharing schemes have caused the local insurance industry a much more difficult, erratic and irrational market place, resulting in further premium erosion in most classes of insurance business. The broking sector remained the main source of revenue to the Broking department, especially, for their large industrial clients that preferred our co-insurance participations. The broking sector also handled large portfolio of specialised liability classes of business such as Professional Indemnity, Directors & Officers Liability, Product Liability and Errors & Omissions that also required special expertise and sizable reinsurance supports. The local market for such risks is limited. Our competitive edge in these areas, supported by established international reinsurers have successfully positioned Lonpac amongst the very few good specialised liability insurers locally. With the growing awareness of the importance of such specialised classes of liability business, we expect our growth in these areas to continue in 2007.
Our strengths in other areas like project construction insurance, large bond facilities and Foreign Workers Compensation Scheme (FWCS) remained an important business portfolio to the Broking department. Moving forward to 2007 and beyond, we expect better growth in the construction insurance as the Ninth Malaysia Plan would provide the catalyst for growth. However, the outlook for the market in 2007 will continue to remain soft and very competitive in the absence of any major catastrophic insurance loss. Our strong financial position, acclaimed management awards together with good quality products and services and fair claims handling practices will remain our strong selling traits. We will continue to focus on the areas of specialisation and improve business relationships with existing brokers and clients.
BUSINESS OPERATIONS REVIEW
113
CLAIMS The prospective insured purchases a policy with the expectation of being indemnified in the event of a misfortune. Therefore, it is imperative that the insurer fulfills its contractual obligations accordingly. Thus, the ultimate test of a responsible and efficient insurer is its ability to settle claims promptly and equitably. Our policyholders can rest assured that legitimate claims will be handled with utmost integrity and transparency. We are confident that our efficient claims management will set Lonpac head and shoulders above the rest of our competitors. We are constantly striving to enhance our claims processes. The periodic review of claims files, regular communication with the insured on the claims status, speedy response to feedback, resolving complaints expeditiously and simplification of procedures are some of the practices established in our relentless pursuit of excellence. Every effort is made to ensure that our performance surpasses our benchmarked standards and is an improvement over the stipulated time frame prescribed by the regulatory authorities for claims settlement practices. In addition, the recently implemented e-Claims inquiry system provides the agents with a valuable tool to keep them abreast with the developments of a claim.
Simultaneously, we remain focused on our onerous duty to act in the best interests of our shareholders. The prevalent threat of fraud especially in liability claims demands our vigilance in closely scrutinising and investigating suspicious claims. We believe that our continuous endeavours to excel in our claims management has enabled us to satisfy our policyholders’ perception of a reputable and reliable insurer and has prepared us to surge forward to confront the challenges ahead.
114
LPI CAPITAL BHD
ANNUAL REPORT 2006
INFORMATION AND COMMUNICATION TECHNOLOGY As the Malaysian insurance industry continues to expand beyond the 25 billion ringgit mark, we believe that the continual strengthening of the corporate Information and Communication Technology (ICT) platform is critical to the continued growth and strategic differentiation of Lonpac. Lonpac continues to build on its solid ICT infrastructure through the process of enhancing and deploying new systems which focus on streamlining our processes and improving our delivery of services. The web-based application framework that was implemented to facilitate the renewal of road tax is continually being upgraded to include other classes of insurance such as fire, marine and personal accident. Plans have been put in place to upgrade our motor e-Insurance system for greater flexibility and functionality which is expected to launch by year 2007. In addition, we have implemented the agent messaging system for better communication with agents recognising the need to offer excellent service and support to our agents. Furthermore, enhancements have been made to our current payment gateway to incorporate other modes of electronic payments such as visa, master, visa purchasing, direct debit, auto-debiting via major banks and mobile money. These activities have also been extended beyond the shore to our branch in Singapore.
BUSINESS OPERATIONS REVIEW
We have embarked on the imaging technology together with the utilisation of optical character recognition (“OCR”) and intelligent character recognition (“ICR”) to meet the information capture needs of some of our departments to increase our work efficiency. Automated workflows are embedded into some business procedures to improve the management of tasks. Another major activity undertaken in 2006 was the implementation of our enterprise output solution whereby our policies can now be assembled digitally and distributed for multiple channel distribution. The flexible multi-channel distribution approach improves business efficiency and reduces costs eventually through timely, on-demand generation. As part of this initiative, the dot matrix and line printers were upgraded with high-speed multi-functional printers on a nationwide scale. While efforts to enhance the functionality of our business systems is on going, security of the systems remains of the highest priority. Lonpac is constantly reviewing and implementing security mechanisms and improving the internal alert monitoring systems to detect unauthorised access. In this respect, enterprise security management has been implemented to centrally monitor and manage the security infrastructure. The system helps to correlate information from disparate systems into actionable intelligence and reports on overall network health and security policy compliance.
115
In addition, Lonpac has also implemented an anti-spamming system within its network. This has helped to increase the productivity of the employees, the performance of the servers and reduce the risk of information theft by blocking phishing messages. Lonpac also realises that in this very competitive, fast paced, and ever-changing business environment, a key competitive quality is how quickly the company responds and adapts to change. We plan to leverage on the technology used in business intelligence to respond to changes and optimise our business decisions to gain sustainable competitive advantage. In line with our corporate mission, the Information and Communication Technology department will continue to focus its efforts in providing technology leadership and support with emphasis on delivering enhanced insurance products and service excellence.
116
LPI CAPITAL BHD
ANNUAL REPORT 2006
CUSTOMER CARE IN TODAY’S COMPETITIVE BUSINESS ENVIRONMENT WHERE CUSTOMERS ARE THE ESSENCE IN THE CONDUCT OF DAILY BUSINESS, IT IS VITAL FOR THE GROUP TO MAINTAIN ITS COMPETITIVE EDGE IN CUSTOMER CARE IN ITS MISSION TO STAY AHEAD OF COMPETITORS IN PROVIDING THE HIGHEST LEVEL OF SERVICES POSSIBLE TO CUSTOMERS.
CUSTOMER CARE
117
CARING FOR OUR CUSTOMERS The Group has always placed high regards and priority on our customers, either existing or potential and this is evident from our corporate mission, “To provide customers with excellent products and services of international standard backed by proven technical and financial strength in line with Financial Sector Master Plan”. The Group’s subsidiary, Lonpac undertook several successful initiatives over the years to provide excellent customer care.
WE COMMIT, EXCEL AND INTEGRATE… Lonpac firmly believes that excellent achievements and long-term sustainable growth of a company are a result of its good reputation and the trust of its customers. It is with this in mind that Lonpac remains focused and get equipped in building deeper and more profitable relationships with customers by setting-up Customer Service Centre. Effectively, the Customer Service Centre functions as a one-stop centre to ensure proper co-ordination of works with other departments and its branches to service our customers. Along with the commitment, professionalism and expertise of the staff, as well as the state of the art information technology systems, the Customer Service Centre has been operating successfully for more than two (2) years since its official opening on 29 July 2004. The dedicated efforts of its staff to accord customers the service beyond the call of duty at all times, has created better value in customer service. More than just building a relationship, Lonpac strives in getting customers beyond the “Zone of Indifference” or in other words is to go beyond satisfaction to motivation. The challenge is how to transform a satisfied insured to a repeat and loyal customer. Lonpac strongly believes this can only be done by addressing, responding and attempting to resolve the customer’s needs at all time.
In anticipation of this standard, Lonpac has set-up a Complaints Unit in August 2003 with the main objective to further enhance customer’s satisfaction and create loyalty opportunities. Experienced and well-trained personnel are assigned to attend to all customers’ needs and complaints immediately, resolved within a specific time to the customers’ satisfaction. With the implementation of high customer service standards and effective complaints handling procedures, it is well recognised that Lonpac has been making good progress to build stronger presence in the insurance industry and gain the trust and confidence of its customers and the public as a whole.
118
LPI CAPITAL BHD
ANNUAL REPORT 2006
LONPAC E-ASSIST… CUSTOMERS’ CONVENIENCE IS OUR COMMITMENT Holding firmly to its conviction of providing efficient, genuine and reliance services to its comprehensive private car insurance policyholders, Lonpac provides Lonpac E-Assist, a complimentary emergency car assistance programme since October 2001, absolutely free membership and operates nationwide. With careful planning and design, the Lonpac E-Assist offers a wide scope of value added services ranging from 24-hour minor roadside repairs and emergency towing services, car rental referral services and arrangement for hotel accommodation in the event of car breakdown or accident.
This exclusive programme is designed in collaboration with an established and reputable service provider. In order to ensure prompt availability of towing services at scenes of accidents and breakdowns, our service provider has engaged a carefully selected panel of reliable tow truck operators located throughout Malaysia. With Lonpac E-Assist, customers can rest assured that convenience and secured assistance is available whenever and wherever needed. In the effort to ensure that the high standards and quality of services are maintained, customers are encouraged to send in their comments, feedbacks or opinions on services rendered by our service provider.
CUSTOMER LOYALTY PROGRAMMES In recognition of customers’ support and trust in Lonpac, the Annual Customer Loyalty Programme, namely Excite Leaflet is designed exclusively for comprehensive private car insurance policyholders. The issue consists of several contests such as Lonpac E-Assist Logo Contest, Grand Prize Contest and Golf Carnival including the feedback column on emergency services. Each contest category grants attractive prizes to be won by customers either on monthly or quarterly basis. Throughout the five (5) years of its introduction, the loyalty programme has been very well received by the customers.
CUSTOMER CARE
119
LONPAC HOME-ASSIST… CONNECT CUSTOMERS TO THE RIGHT HELP In 2004, Lonpac proudly announced its latest programme, Lonpac Home-Assist, for its householder and houseowner policyholders in its efforts to protect their interests. With simple steps to follow, the policyholder will get connected to home assistance when encounter home inconveniences. The assistance is purely a referral service and ranging from electrical, plumbing and locksmith assistance, air-conditioning and pest control services, leaking roof as well as cleaning and restoration of carpets.
GLOBAL TREND TO VIRTUAL INFORMATION With the global trend of using the Internet as a delivery channel and moving towards e-Commerce in providing online insurance, Lonpac has exclusively designed its website to promote its products and services virtually in an efficient and cost effective manner as well as to further improve customer care and productivity. This is one of the Company’s strategies in providing its customers with an easy access to information and responsive services. The website has been constantly updated with the latest news on products and services, current insurance market issues and other insurance related information. It also serves as a platform for enquiries, feedbacks and complaints on the services provided.
LOOKING AHEAD In line with its corporate mission, Lonpac will continuously propel the business to greater height with effective planning, strong commitment to excellent service together with the implementation of various strategic initiatives to respond rapidly to changes in customers’ needs and market demand. Lonpac has been constantly working on plans to upgrade the standard of services rendered to customers and have invested significantly in a long-term growth programme.
120
LPI CAPITAL BHD
ANNUAL REPORT 2006
HUMAN RESOURCE DEVELOPMENT The quality and integrity of an organisation lie within its human capital. LPI Group, being in the financial services industry values employees as imperative assets to advance and succeed in the competitive business environment. As such, the Group has always invested in its staff right from the onset of their career with the Group. The Group believes in getting the best out of the staff by nurturing in them the right corporate values in line with our corporate mission. Several trainings are lined up for staff on a continuing basis to equip them with essential knowledge, skills and attitudes supported by a performance reward system to generate a strong performance culture. The know-how, skills and expertise of staff constitute part of the Group’s intellectual capital. Supporting life long learning and development continues to be one of the key drivers to help the Group outperforms our competitors and achieve superior results. The Group also strongly believes in the staff sharing in the Group’s success. Hence, staffs’ remuneration is competitively geared towards performance and delivery of the Group’s business goals and strategies.
DEVELOPING HUMAN CAPITAL FOR CONTINUED SUCCESS The Group via its subsidiary, Lonpac is committed in encouraging upward mobility of staff by providing continuous learning and development programme throughout the year on both operational and management skills to nurture their full potentials in pursuit of the Group’s corporate mission.
In August 2006, Lonpac conducted separate trainings for the managers and senior managers. Though held separately, both conferences carried the same motto “Lonpac At The Crossroads Of Growth And Profitability”. At the conferences, the managers discussed on the business performance and deliberated on the effectiveness of the strategic action plans implemented. In September 2006, a seminar for the Assistant Managers and Senior Executives was held with a workshop on social and business grooming etiquette. The programme which was designed to enhance the business etiquette skills, exposed the following essential knowledge to the participants: i.
giving the right message from first impressions
ii. business interaction skills iii. dressing for success iv. business entertaining
HUMAN RESOURCE DEVELOPMENT
In addition, two managers attended the NIPPONKOA International Seminar held in September 2006 at the Training Centre and Head Office of Nipponkoa Insurance Co. Ltd, Tokyo, Japan. The seminar gathered participants around the world with representatives from United Kingdom, United States of America, Hong Kong, Taiwan, Philippines, Thailand, Indonesia, Singapore and Malaysia. The international seminar provides a forum for the delegates to form a workgroup to share business experience and technical knowledge. Lonpac was one of the two representatives of Persatuan Insuran Am Malaysia that participated in the 35th Insurance School (Non-Life) of Japan (ISJ) General Course held in Tokyo, Japan. The course was jointly organised by The General Insurance Association of Japan and The Non-Life Insurance Institute of Japan. It was an educational and training programme for insurance practitioners in the East Asian regions and gathered participants from Taiwan, Vietnam, Korea, Hong Kong, Philippines, Cambodia, Indonesia, Singapore, China, Thailand, Brunei and Malaysia. Speakers from Japanese insurers and university were invited to deliver talk and share their vast knowledge on Japanese insurance market and current issues.
121
Executives, Officers and Clerical staff are given on-job training on new changes in the operational procedures or new development in the market practice in relation to their work in order to add value to the Group as well as to increase productivity. In addition to group training programmes, Lonpac also arranged for staff to attend talks, seminars, workshops, conferences and other training programmes organised by renowned organisation like General Insurance Association of Malaysia, National Insurance Association of Malaysia, Malaysian Institute of Insurance, Institute of Bankers Malaysia, Institute of Internal Auditors of Malaysia and KPMG Malaysia to update themselves on new developments in the business environment. The Group recognises the essential of strategising the human resource management to scale new heights of excellence and achieve accelerated growth.
122
LPI CAPITAL BHD
ANNUAL REPORT 2006
CALENDAR OF SIGNIFICANT EVENTS
CALENDAR OF SIGNIFICANT EVENTS
45TH LPI’S ANNUAL GENERAL MEETING Shangri-La Hotel, Kuala Lumpur
09 FEB CORPORATE
CORPORATE
08 MAY
MANAGERS’ BUSINESS MEETING Palace of The Golden Horses, Kuala Lumpur
123
124
LPI CAPITAL BHD
ANNUAL REPORT 2006
44TH LONPAC ANNIVERSARY DINNER & DANCE – “LAND OF THE KINGS” Palace of The Golden Horses, Kuala Lumpur
09 MAY EMPLOYEE RELATIONS
CALENDAR OF SIGNIFICANT EVENTS
125
126
LPI CAPITAL BHD
ANNUAL REPORT 2006
LPI RECEIVED MALAYSIAN BUSINESS CORPORATE GOVERNANCE AWARD 2005 – AWARDED BY MALAYSIAN BUSINESS OF BERITA PUBLISHING SDN BHD Renaissance Hotel, Kuala Lumpur
23 MAY AWARDS & RECOGNITION
COMMUNITY
CORPORATE
26 MAY
27 MAY– 04 JUN
SOCIAL CONTRIBUTION TO PERSATUAN KANAK-KANAK ISTIMEWA HULU LANGAT Cheras, Selangor
LONPAC PARTICIPATED IN THE BOOKFEST @ MALAYSIA 2006 Kuala Lumpur Convention Centre
CALENDAR OF SIGNIFICANT EVENTS
127
SAFETY AWARENESS TALK Lonpac’s Head Office, Kuala Lumpur
LONPAC AMAZING HUNT Hotel Equatorial, Melaka
LONPAC FAMILY DAY Palace of The Golden Horses, Kuala Lumpur
06 JUN
17–18 JUN
08 – 09 JUL
EMPLOYEE RELATIONS
EMPLOYEE RELATIONS
CORPORATE
27 JUL OFFICIAL VISIT BY PRESIDENT OF NIPPONKOA Menara Public Bank, Kuala Lumpur
EMPLOYEE RELATIONS
128
LPI CAPITAL BHD
ANNUAL REPORT 2006
COMMUNITY SERVICE AND SOCIAL CONTRIBUTION TO RUMAH HOPE (ORPHANAGE HOME) Petaling Jaya, Selangor
29 JUL COMMUNITY
EMPLOYEE RELATIONS
HUMAN RESOURCE DEVELOPMENT
29 JUL
11–13 AUG
LONPAC’S BADMINTON COMPETITION Wisma Fui Chiu, Kuala Lumpur
MANAGERS’ CONFERENCE 2006 – LONPAC AT THE CROSSROADS OF GROWTH AND PROFITABILITY Club-Med Cherating, Pahang
CALENDAR OF SIGNIFICANT EVENTS
SENIOR MANAGERS’ CONFERENCE 2006 – LONPAC AT THE CROSSROADS OF GROWTH AND PROFITABILITY Sydney, Australia
LONPAC E-ASSIST GOLF CARNIVAL 2006 Monterez Golf & Country Club, Selangor
29 AUG – 03 SEP
12 SEP
HUMAN RESOURCE DEVELOPMENT
CUSTOMER RELATIONS
HUMAN RESOURCE DEVELOPMENT
EMPLOYEE RELATIONS
15–17 SEP
16 SEP
ASSISTANT MANAGERS & SENIOR EXECUTIVES SEMINAR 2006 – WORKSHOP ON SOCIAL & BUSINESS GROOMING ETIQUETTE Pulau Pangkor, Perak
LONPAC PARTICIPATED IN BASIS BAY INTER-INSURANCE FUTSAL COMPETITION 2006 Sports Planet Sunway, Selangor
129
130
LPI CAPITAL BHD
ANNUAL REPORT 2006
LPI RECEIVED KPMG SHARHOLDER VALUE AWARD 2005 – AWARDED BY KPMG Menara Public Bank, Kuala Lumpur
05 OCT AWARDS & RECOGNITION
EMPLOYEE RELATIONS
CORPORATE
EMPLOYEE RELATIONS
08–13 NOV
17–19 NOV
27 NOV
SPORTS CLUB TRIP Korea
LONPAC PARTICIPATED IN THE FINANCIAL EXPO “FinEx” 2006 Mid Valley Convention Centre, Kuala Lumpur
LONPAC BOWLING TEAM CHALLENGE Bangsar Bowling Centre, Kuala Lumpur
CALENDAR OF SIGNIFICANT EVENTS
131
LPI RECEIVED CERTIFICATE OF MERIT – NATIONAL ANNUAL CORPORATE REPORT AWARD (NACRA) 2006 Sime Darby Convention Centre, Kuala Lumpur
30 NOV AWARDS & RECOGNITION
CORPORATE
AWARDS & RECOGNITION
CORPORATE
05 DEC
07 DEC
18 DEC
MANAGERS’ ANNUAL MEETING Lonpac’s Head Office, Kuala Lumpur
LPI RECEIVED CERTIFICATE OF FINALIST – NATIONAL AWARD FOR MANAGEMENT ACCOUNTING (NAfMA) 2006 Shangri-La Hotel, Kuala Lumpur
OFFICIAL VISIT TO NIPPONKOA NIPPONKOA’s Head Office, Tokyo
