KUALA LUMPUR: Pacific & Orient Bhd’s (P&O) subsidiary Pacific & Orient Insurance Co Bhd (POI) has entered into a 20% motor quota share treaty agreement with one of the top five professional reinsurers in the world.

In a statement yesterday, P&O said it was in line with a mitigation risk objective, and the main driver for the treaty arrangement was the more-than-expected growth in POI’s turnover in the first quarter of the group’s financial year ending 2010. It said the turnover grew robustly at 33% quarter-on-quarter.

“The group is pleased that POI was able to enter into such a quota share arrangement as it reflects the confidence of a foreign reinsurer in the Malaysian insurance market in general and in our motor business portfolio, in particular,” it said.

P&O did not name the reinsurer but said it was rated AA- by Standard and Poor’s.


This article appeared in The Edge Financial Daily, March 12, 2010.