PERINSURAN Brokar's golden gala dinner last Monday night was not only to mark its 50th year.
Sarawak's largest insurance broking firm and Malaysia's second largest – in terms of annual turnover – was also celebrating a remarkable reversal of business fortune.
Established in 1974 as a joint venture between the Sarawak Economic Development Corporation (SEDC) and Lloyds of London broker Heath Hudiq Langeveldt with the aim of exploiting the opportunities presented in the oil and gas industry, it soon secured MLNG 1 as an account.
In 1995 under a new set of owners - SEDC, Heath Hudiq Langeveldt had sold off their shares then - Bank Negara suspended the company's brokerage licence over what its CEO Rafidah Adenan described as “some issues”.
Its corporate brochure stated that “management complacency” led to the six-month suspension beginning in the fourth quarter of 1995.
The direct consequence was that the company lost its biggest account, MLNG.
“Our reputation was battered. 75% of our business then was with MLNG,” Rafidah, who was then a “sleeping director” in Perinsuran, said.
In 1996, Rafidah joined the company as a management trainee and the following year, she purchased a minority stake in the company and went about to win back the licence.
She said after joining the company, she saw the potential in it and quickly decided that “this is the company where I can invest my time and money”.
With a new CEO – now technical advisor -and a recovery plan, it was the start of a steady climb out of the dumps to recovery.
Up to September this year, Rafidah reported Perinsuran's broking income was already at RM32 million by providing independent corporate insurance advice to a broad range of companies varying in size from SMEs to listed companies and multinational corporations.
“As far as insurance consultancy is concerned, RM32 million is a lot of money.”
In the industry, that RM32 million equates to about RM200 million in total sum assured or the coverage of assets valued at around RM35 billion.
That turnover puts Perinsuran as one of the top two wholly-owned Malaysian insurance brokers in the country in terms of revenue.
“So grateful we could reach this milestone today,” Rafidah said in a pre-dinner media conference.
There are times when we think that we would get to this stage,” the eldest daughter of former Sarawak chief minister Tan Sri Adenan Satem, added.“This is a celebration for all of us tonight.”
This privately owned, 100% Bumiputera company is now casting its eyes further.
“We would like to grow our footprint outside Malaysia,” Rafidah said, without giving away too much details.
She only said Perinsuran, which offers conventional and Takaful insurance brokerage services, is in talks with another brokerage for the overseas venture.
It already has a branch office in Kuala Lumpur. - September 26, 2024
