MNRB Holdings posts 38.2% increase in reinsurance profit

MNRB Holdings Berhad (MNRB), has released its financial results for the first quarter ended 30 June 2024 (Q1 FY2025), which includes an RM86.1 million ($19.42 million) net profit from Malaysian Re, the company’s reinsurance and retakaful business, representing a 38.2% increase from the prior year period.

The company stated that the improved net profit was underpinned by a better insurance service result, which was contributed by improved claims experience in the period under review.

Elsewhere, Q1 FY25 also saw Malaysian Re expand its international business with a 5.4% increase in gross written premium and gross written contribution (GWP/GWC) to RM586.7 million ($132.3 million) from RM556.8 million ($125.6 million) in the same period last year.

All in all, MNRB posted a 32.7% increase in its net profit for Q1 FY25  at RM92.2 million ($20.8 million) from the RM69.5 million ($15.6 million) figure that was recorded in the previous year.

The company’s revenue remained stable at RM941.1 million ($212.3 million) in the period, despite a slight decrease of 0.4% from RM945.3 million ($213.3 million) from last year.

MNRB confirmed that this stability was achieved through significant growth in insurance and takaful revenue from the company’s general takaful and reinsurance/retakaful businesses.

Moving towards investment income, MNRB witnessed a notable increase, posting an investment income of RM109.4 million ($24.6 million), from last year’s RM96.5 million ($21.7 million).

Zaharudin Daud, President & Group Chief Executive Officer of MNRB, commented: “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.

“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.”

Commenting on the outlook for the group this Financial Year, MNRB Chairman, Datuk Johar Che Mat, said: “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.

“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.”

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