Kith Meng Launches Foray Into Cambodian Insurance Business

With the launch of Infinity Gene­ral Insurance, Plc, on July 25 in Phnom Penh, prominent businessman Kith Meng made his official entry into the country’s insurance business.

The insurer is a joint venture between Kith Meng’s own Royal Group of Companies and Infinity Financial Solutions, a financial services firm based out of Kuala Lumpur. According to Infinity General Insurance CEO Jeffrey Whittaker, the Royal Group is the majority shareholder in the partnership.

Whittaker said that the decision to set up shop in Cambodia was based on sharp growth in the banking sector recently.

“We are very proud to see how consumer confidence in the banking sector has developed over the last year, and our aim is to do the same,” he said.

It was less than three years ago that Kith Meng, owner of MobiTel and Cambodia Television Net­work, extended his reach into banking, creating another joint venture with the Melbourne-based ANZ bank in late 2004.

Whittaker said that the insurer was in full compliance with Cam­bodia’s insurance law, which requires a minimum capital investment of $7 million. He added that the firm is also backed by Swiss Re, the world’s largest reinsurer.

Kith Meng said he was too busy to speak with a reporter July 26.

Speaking at Wednesday’s opening ceremony in Phnom Penh, Finance Minister Keat Chhon said that he welcomed Infinity’s introduction to the insurance industry.

Keat Chhon said that with the addition of Infinity, there are now four insurers operating in Cam­bodia.

He added that there has been tremendous growth in that field with insurance premiums jumping from $4 million in 2002 to $12 million last year.

Keat Chhon said that a strengthening insurance industry would help pave the way for a Cambodian stock exchange, which he said is planned for 2009.

Vong Sandap, director-general for Caminco Insurance, said that his company saw no problem with a new competitor entering the field.

He added that although the Cambodian market was small, it had a high potential for earnings.

 

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