Kuala Lumpur, 16 August 2024 - MNRB Holdings Berhad (MNRB or the Group) today announced its financial results for the first quarter ended 30 June 2024 (Q1 FY2025). For the period under review, the Group delivered a solid performance, reflecting the strength of its reinsurance/retakaful and takaful businesses, and underscoring its commitment to profitable growth.
Q1 FY2025 Results
For Q1 FY2025, the Group recorded a significant 32.7% growth in its net profit to RM92.2 million from RM69.5 million recorded in the same period last year. This increase was driven by higher insurance and takaful service results, attributed to improved claims experience.
The Group's revenue remained stable at RM941.1 million in Q1 FY2025, demonstrating resilience despite a slight decrease of 0.4% from RM945.3 million. This stability was achieved through significant growth in insurance and takaful revenue from the general takaful and reinsurance/retakaful businesses, which effectively offset the lower takaful revenue from the family takaful business.
The Group's investment income increased to RM109.4 million from RM96.5 million in the same period last year due to increase in asset size up to 10% in fixed income and deposits as well as equity.
The improved performance for Q1 FY2025 led to the increase of MNRB's annualised Return on Equity ("ROE") to 12.6% from 10.1% in Q1 FY2024.
Commenting on the Group's performance, Zaharudin Daud, President & Group Chief Executive Officer of MNRB said, "We had a strong start this financial year by leveraging the synergies and unique capabilities of each business unit to optimise operations, drive profitability and manage competitions. This collaborative approach has been instrumental in achieving the credible performance and sets a solid foundation for continued growth".
Zaharudin added, "Our reinsurance/retakaful business continues to grow its international presence with diverse lines of business, while our takaful businesses continue to expand its market reach within the domestic market with the support of digitalisation measures designed to offer excellent customer experience and easy access to online transactional platforms. This is also inline with our commitment in leveraging technology and innovation to produce higher revenue, enhance operational efficiencies and strengthen our brand reputation".
Reinsurance/retakaful Business: Malaysian Re continues to expand its international business
The positive performance in the first quarter of the Group's reinsurance/retakaful business, Malaysian Reinsurance Berhad (Malaysian Re), was a continuation of the advantageous positions taken during the hard market last year.
In Q1 FY2025, Malaysian Re gained a net profit of RM86.1 million, a 38.2% increase from RM62.3 million recorded in Q1 FY2024, underpinned by better insurance service result contributed by improved claims experience in the period under review. This was also a result of the Company's strategic approach to focus on international and non-voluntary cession (VC) businesses to strengthen the portfolio and diversify its business model.
Q1 FY2025 also saw Malaysian Re expanded its international business with a 5.4% growth in gross written premium and gross written contribution (GWP/GWC) to RM586.7 million from RM556.8 million in the same period last year.
Takaful Businesses: Takaful IKHLAS on the pursuit of expanding market reach
Takaful IKHLAS, comprising Takaful Ikhlas General Berhad (Takaful IKHLAS General) and Takaful Ikhlas Family Berhad (Takaful IKHLAS Family), saw net profit rise by 39.2% to RM16.7 million from RM12.0 million in the same period last year, driven by higher wakalah fees, despite the easing of 1.2.% in takaful revenue to RM406.6 million from RM411.7 million in the corresponding period mainly due to the family takaful result.
The general takaful's fire and motor businesses, as well as the family takaful's regular contribution, expanded steadily, primarily due to improved individual new businesses.
Outlook
Commenting on the outlook for the Group this Financial Year, MNRB Chairman, Datuk Johar Che Mat remarked, "MNRB Group is steadfastly committed to driving revenue expansion and enhancing profitability whilst optimally managing our capital. Strategic initiatives are in place to drive profitability across both our wholesale and retail segments through our reinsurance/retakaful and general businesses, as well as recalibrating our family takaful business model."
Datuk Johar further remarked "While a comprehensive Group strategy has been established, we are equally committed to executing business-specific strategies for each business unit to foster long-term sustainable growth across the Group and deliver value to our stakeholders".