Kuala Lumpur, 30 May 2017 – MNRB Holdings Berhad (“MNRB”) posted a sharp increase in net profit for the Financial Year Ended 31 March 2017 (FY2017). The Group saw its unaudited net profit rebounding to RM70.2 million from a net loss of RM38.8 million in the previous financial year, led mainly by favourable results from reinsurance operations while relatively stable financial market condition contributed to gains in investment income.
Last year, the Group had initiated strategic business plans to reposition its reinsurance portfolio which are beginning to show positive results. As a result of that, its reinsurance subsidiary, Malaysian Reinsurance Berhad (“Malaysian Re”) recorded a net profit of RM82.4 million over the same period as compared to RM2.5 million last year. MNRB President & Group CEO Mohd Din Merican said, “The alteration of business strategy via becoming more selective and targeting our business from risk-adjusted perspective is much needed in adapting to the present market landscape. We shall continue to undertake these measures to sustain our profitability in this challenging business environment.”
Encouraging development was also observed in its takaful business with net loss narrowing significantly to RM9.1 million as compared to RM34.8 million in the previous year. Its takaful subsidiary, Takaful Ikhlas Berhad (“Takaful IKHLAS”) saw its year on year combined family and general business growth of 10.8% as compared to the overall takaful industry growth of 7.1% in 2016, reflecting its strong presence in the market.
The Group is confident that improvement in results would persist in FY2018 given the new business strategies that are already in place. In his cautiously optimistic outlook Mohd Din Merican said, “GDP growth in the first quarter of this year was better than expected and this is somewhat positive for the business outlook. Nonetheless business expansion going forward will continue to be guided by selective underwriting, effective claims management and cost containment to optimise our earnings”.
MNRB Holdings Berhad is an investment holding company. Amongst its wholly owned subsidiaries are Malaysian Reinsurance Berhad (“Malaysian Re”), Takaful Ikhlas Berhad (“Takaful IKHLAS”), MNRB Retakaful Berhad (“MRT”) 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 www.mnrb.com.my