Kuala Lumpur, 21 January 2025 - MNRB Holdings Berhad (MNRB or the Group) today announced its financial results for the third quarter ended 31 December 2024 (Q3 FY2025), demonstrating sustained strong performance across its business segments.
The Group's strategic initiatives, both short and medium-term, have yielded positive results across its wholesale and retail businesses, contributing significantly to the strong profitability. This performance underscores MNRB's continued commitment to resilient growth and value creation for stakeholders.
Q3 FY2025 Results
For the first nine months of FY2025, MNRB's group net profit reached RM300.8 million, marking a robust 54.0% growth compared to RM195.7 million in the same period last year. This was driven by improved insurance/takaful service results, primarily from the Group's reinsurance and general takaful segments, which underscores its balanced and disciplined underwriting approach.
The Group recorded an RM2.9 billion revenue in Q3 FY2025, reflecting an 11.5% increase over the RM2.6 billion recorded in the corresponding period. The revenue growth was driven by the Group's reinsurance and general takaful segments.
MNRB's notable performance was reflected in the significant increase in its annualised Return on Equity (ROE), which rose year on year to 12.2% from 9.6%.
Individual Third Quarter FY2025 Results
For the individual third quarter ended 31 December 2024, the Group posted a net profit of RM115.9 million, marking a 37.0% increase from RM84.6 million in the same period last year. This strong performance was primarily driven by higher insurance service results and improved claims experience as compared to corresponding period.
The Group's total revenue in the quarter grew 15.8% to RM936.7 million from RM808.6 million in the corresponding period, contributed mainly by the growth in the reinsurance and general takaful segments.
Comments from MNRB Chairman
Datuk Johar Che Mat, Chairman of MNRB commented on the Group's performance:
"MNRB has maintained a robust performance in Q3 FY2025, reflecting the effectiveness in aligning our strategic vision to the successful execution of key initiatives which focuses on profitable growth. Through our reinsurance/retakaful and takaful businesses, we have successfully expanded our market presence, entering into new geographical territories and market segments while also diversifying our product offerings. As a result of the Group's strategy to build the specialty lines of business under our reinsurance/retakaful segment, we have seen our international business growing well throughout the year and is currently performing as well as our local business of which we are the market leader".
Datuk Johar Che Mat added, "Technology has played a pivotal role in enhancing our operational efficiency. By embracing digital transformation, we have streamlined processes, improved efficiency, and optimized workflows - leading to a significant enhancement in business performance and customer experience.
On the Group's commitment to sustainability initiatives, Datuk Johar Che Mat stated, "We are dedicated to balancing strong financial performance with ongoing sustainability efforts. Key initiatives this year include providing educational assistance through "Program Lestari Cemerlang MNRB" and the MNRB Scholarship Fund, establishing the ASEAN Renewable Energy Pool to support regional renewable energy goals, a nationwide tree plantation program under 'MNRB Tree of Tomorrow,' and community outreach efforts through our 'IKHLAS Barakah House' initiative, which focuses on fostering education, promoting economic empowerment, improving health outcomes, and advancing environmental responsibility."
Reinsurance/retakaful Business: Malaysian Re's performance remains robust
Malaysian Reinsurance Berhad (Malaysian Re), the Group's wholesale reinsurance/retakaful segment, continued its strong performance in Q3 FY2025 by recording a net profit of RM257.3 million, a remarkable 65.1% increase from RM155.8 million in Q3 FY2024. This growth was primarily driven by higher insurance service result, stemming from an improved claims experience in comparison to the corresponding period.
Malaysian Re's insurance/takaful revenue increased by 16.7% to RM1.4 billion from RM1.2 billion, mainly due to growth in foreign risk transfer facilities, Voluntary Cession (VC), and domestic treaties.
Takaful Business: Takaful IKHLAS delivers commendable performance
The Group's retail takaful segments, Takaful Ikhlas General Berhad and Takaful Ikhlas Family Berhad, collectively known as Takaful IKHLAS, recorded a net profit of RM49.4 million as compared to RM51.7 million in the same period last year. The net profit was contributed predominantly by the general takaful segment, which recorded increase in takaful revenue mainly from the motor and fire classes. With regards to the family takaful segment, we are positive that there are head rooms for improvement in growth and profitability, especially with the refreshed leadership team".
Takaful IKHLAS' takaful revenue remained strong at RM1.1 billion, driven primarily by its general takaful segment.
Outlook
Looking ahead, Datuk Johar Che Mat stated, "Building on this strong momentum, we are well-positioned to close the financial year on a positive note. The recent strengthening of our leadership team, along with our continued commitment towards a focused underwriting approach, innovation and operational excellence, positions us for long-term growth. We remain steadfast on delivering value creation for our stakeholders and driving success across all business segments."
In addition, Datuk Johar Che Mat also remarked that Malaysian Re has recently received approval from Bank Negara Malaysia (BNM) to renew its Voluntary Cessions (VC) for another three years, starting from 1 January 2025 to 31 December 2027. "The VC renewal will continue to solidify our domestic market presence, enabling us to continue meeting the needs of the general insurance sector while providing additional capacity support through further treaties with domestic insurers."