KUALA LUMPUR: Insurer KURNIA ASIA BHD []'s earnings fell 9.7% to RM23.81 million in the first quarter ended March 31, 2010 from RM26.39 million a year ago due to higher tax expenses.

It said on Tuesday, May 11 earnings were lower mainly due to the significantly higher tax expenses of RM11.24 million compared with RM70,000 a year ago.

Pre-tax profit rose 32.5% to RM35.04 million from RM26.46 million a year ago. Revenue declined to RM274.96 million from RM280.62 million. Earnings per share were 1.6 sen versus 1.77 sen.

It achieved an underwriting surplus of RM10.76 million for 1Q, which was a 160.9% increase on-year, underpinned by improvements in the management of its claims and management expenses.

Net investment income was RM29.58 million, with an investment yield of 6.6%, which was higher than last year's yield of 5.9%. Net asset value improved by 10.5% to RM331.69 million from a year ago.

Executive chairman Tan Sri Kua Sian Kooi said the improvements and achievements were accomplished through its on-going internal transformation programmes -- transformation of operations and performance and Mission 15, which focus on more stringent business risk selection, better claims management and prudent cost management.

In line with its strategy to grow its non-motor business, the group posted a 23.8% increase in premium to RM55.28 million in the first quarter from a year ago.

"As a result, KAB's non-motor business now comprises 22% of its total business portfolio for this quarter compared with 17% for the corresponding quarter last year," he said.