Kuala Lumpur, 28 November 2019 – MNRB Holdings Berhad (MNRB) recorded an 80% increase in its Group Net Profit for the first six months ended 30 September 2019. All its operating subsidiaries, namely Malaysian Reinsurance Berhad (Malaysian Re), Takaful IKHLAS Family Berhad (formerly known as Takaful Ikhlas Berhad) (Takaful IKHLAS Family) and Takaful IKHLAS General Berhad (Takaful IKHLAS General), contributed to the substantial improvement to the Group Net Profit of RM86.4 million, from RM48.0 million recorded in the same period last year.
The Group’s Turnover had also improved significantly, with Gross Premiums registering a growth of 11% during the first six months to RM1.1 billion, from RM963.2 million a year ago. Likewise, the Group Net Investment Income for the first six months soared by 147% to RM316.3 million from RM128 million last year.
“Our strategy to enhance our investment yield whilst maintaining healthy cash flow had shown a positive impact on the value of our investment portfolios. Our investment returns, especially for Takaful IKHLAS Family, had surged positively during this period, boosted by the rally in the local bond market since late last year”, said Mohd Din Merican, the President & Group Chief Executive Officer of MNRB.
On the subsidiaries’ performance, Malaysian Re’s Gross Premium grew by 9% during the period to RM634.2 million from RM581.7 million last year. Higher premiums were recorded across all business units within Malaysian Re. In addition, new initiatives undertaken by Malaysian Re since early this year to develop its new international business portfolio had started showing results and contributed to the improved top-line observed during the period.
At the same time, Takaful IKHLAS’ Gross Contribution rose by 13% to RM431.8 million, from RM381.5 million last year. The growth came from both Takaful IKHLAS Family and Takaful IKHLAS General, each registered a growth of 12% and 16%, respectively. As a result, the net profit of the Group’s takaful businesses rose sharply by 163% to RM43.2 million, from RM16.4 million last year, contributed by higher growth in Gross Contribution, coupled with the improved net investment income.
In August this year, Takaful IKHLAS General entered into a strategic bancatakaful partnership with CIMB Islamic Bank. Since then, total gross contribution of RM8.3 million had already been recorded up to 30 September 2019. With this encouraging result, Takaful IKHLAS General is confident that it will achieve the partnership’s joint target of RM168 million, or 11% y-o-y over the next five years.
Over the last 12 months, Takaful IKHLAS had also been promoting the importance of takaful protections to all Malaysians. In line with this, Takaful IKHLAS Family had collaborated with “Community Based” organisations to provide financial assistance and protection for the B40 group. In addition, Takaful IKHLAS General had recently launched IKHLAS e-Hailing, one of the most sought-after service nationwide, an add-on to its IKHLAS Private Car Takaful product.
“Our strategic plans have been demonstrating positive results for MNRB Group in the first six months of this financial year. I am delighted by the speed at which we are executing the strategic priorities that we announced last year. Moving forward, our focus now is to sustain this growth. We will continue to enhance our product offerings, develop innovative products, strengthen our digital platforms and improve our customer experience”, said Mohd Din Merican.
MNRB had recently declared an interim dividend of 2.5% and concurrently, offered a Dividend Reinvestment Plan (DRP) to all its shareholders. Under the DRP, shareholders of MNRB are provided with an opportunity to reinvest their above dividend entitlement into new MNRB shares at about 10% discount from the current price. The new shares to be issued by MNRB pursuant to the DRP are expected to be listed by mid-December this year.