KUALA LUMPUR: AEON Credit Service (M) Bhd (ACSM) is aiming to enlarge its insurance division as one of its core businesses once the relevant infrastructure has been put in place.
ACSM managing director Kenji Fujita said the non-bank financial provider is confident of growing in the Malaysian market.
"Only about 70 per cent of Malaysians own insurance, compared to country like Japan which has 100 per cent insurance coverage," he said after the company's shareholders meeting in Kuala Lumpur, today.
Its chairman Datuk Abdullah Mohd Yusof said the company wants to grow the insurance business very fast as there is a huge potential banking on its 6 million customers database for Aeon Co and Aeon Big.
"We want it to be a core business. We have to build the infrastructure and hence it will grow the business," he said.
Abdullah pointed out that the insurance segment is a fee-based business, which will not require substantial capital expenditure.
"We will utilise our current group of database of customers and invest in digital marketing, as part our investment," he said.
For the financial ended February 28, 2017 (FY17), the company posted an increase of 14.2 per cent to RM1.10 billion compared to RM965.23 million due to stronger growth in its vehicle easy payment and personal financing compared to other services.
Its net profit for the period under review increased 16.13 per cent to RM265.03 million against RM228.22 million in the same period a year ago.