MNRB’S NET PROFIT NEARLY DOUBLED

30 May 2018

Kuala Lumpur, 30 May 2018 – MNRB Holdings Berhad (MNRB) ended its financial year on 31 March 2018 (FY2018) with a Group Profit Before Tax of RM189 million as compared to RM99 million in the previous financial year.  Consequently, its Net Profit improved by 93% to RM137 million from RM71 million recorded last year. The improved results came on the back of sound performances from its subsidiaries; national reinsurer, Malaysian Reinsurance Berhad (Malaysian Re), and Takaful arm, Takaful Ikhlas Berhad (Takaful IKHLAS). 

“Our commendable results last year reflected the Group’s perseverance and strong dedication whilst operating under an uncertain economic landscape. We were focused on executing our strategic business approaches, which yielded to our strong performance in FY2018,” said Mohd Din Merican, President & Group Chief Executive Officer of MNRB. 

Meanwhile, the Group’s total assets increased 4.8% to RM7.9 billion in FY2018 from RM7.6 billion in FY2017. The Group also recorded higher net investment income at RM248 million as compared to RM229 million in the prior year.  More than 40% of the Group’s investments were in low risk assets, including Malaysian Government Securities and Government Investment Issues.  

T20 key growth driver for Malaysian Re

Malaysian Re had, on 1 April 2017, launched its strategic business transformation programme, known as the Business Transformation 2020 (T20). The results from Malaysian Re’s T20 was manifested in the Company’s improved claims and combined ratios observed in FY2018, which ultimately translated into improved underwriting surplus and net profits. 

“Under T20, Malaysian Re had rationalised its overseas portfolio by terminating non-profitable businesses and increasing its participation in high-growth and profitable segments. In addition, Malaysian Re had further refined its risk selection process and strengthened its internal control for the businesses it underwrites,” added Mohd Din.
Malaysian Re’s Retakaful Division (MRRD) had also successfully secured higher businesses volume this financial year. Its gross contribution rose 51% to RM30 million from RM8 million recorded in the previous year.  

Malaysian Re currently sustains its dominance in the domestic market with 60% market share.  It is also ASEAN’s largest reinsurer by asset size and second largest by gross premiums. 

Takaful IKHLAS’ Commendable Growth

Takaful IKHLAS’ net profit grew 525% to RM38 million in FY2018 from RM9 million loss recorded the previous financial year. This sharp improvement was underpinned by higher wakalah fee from both its Family and General Takaful businesses, partly due to competitive repricing of its takaful products, as well as improvements in claim ratios and effective cost containment initiatives. 

Takaful IKHLAS’ Agency Transformation Programme (ATP) continued to be the main driver for the growth in its family takaful business. Through ATP, Takaful IKHLAS had recorded an increase in number of Leaders and recruited Agents which led to a sizeable growth in its new business portfolio.   

“Takaful IKHLAS has set the right track in sustaining a positive momentum and we hope to see the business continue to flourish in FY2019,” added Mohd Din.

Outlook

“Moving into FY2019, we will continue to remain cautiously optimistic, enforce strict underwriting discipline and drive value through integration and customer focus. Guided by T20, Malaysian Re will enhance its value propositions to clients through innovative products and services developed by our in-house talents and strategic partnerships. Meanwhile Takaful IKHLAS is set to expand its business through the strengthening of ATP and digital platforms,” said Mohd Din. 

MNRB Holdings Berhad is an investment holding company. Amongst its wholly owned subsidiaries are Malaysian Reinsurance Berhad (Malaysian Re), Takaful Ikhlas Berhad (Takaful IKHLAS), and Malaysian Re (Dubai) Ltd (MRDL).  MNRB is listed on the Main Market of the Bursa Malaysia Securities Berhad. For more information, please log on to http://www.mnrb.com.my