It holds the largest share of the motorcycle insurance market at 51%.
It intends to concentrate on the business it does best – insuring motorcyclists.
It says motor vehicle ownership is still on the uptrend, which translates into more business for its main source of revenue.
It does not see the impending detariff of the motor insurance industry in 2016 as a chance to reduce prices for the sake of increasing market share.
In May 2013, South African insurer Sanlam acquired a 49% stake in P&O’s subsidiary P&O Insurance Bhd for rm270 million.
The sale provide P&O with rm170 million for its coffers, RM150 million of which has been set aside for future investment and diversification plans.
It has set up a subsidiary in England – P&O Properties Ltd – with its intended principal business listed as investment, development and dealings in property.
Market observers say it is likely that the proceeds from the sale would be pumped into this new subsidiary.
In 2016, the motor vehicle industry will no longer be governed by a tariff set by BNM. And this is a prospect many insurers are looking forward to, as it means a more flexible and risk sensitive pricing model.
A scenario painted by insurance industry observers is that there could be a free for all price war, as providers undercut one another to gain market share.
CEO Chan Thye Seng is also on the board of Ancom, and director and major shareholder of Mah Wing Holdings Sdn Bhd.
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