Kuala Lumpur, 28 February 2018 – MNRB Holdings Berhad’s (MNRB) group net profit rose 135% to RM107.4 million for the 9-month financial period ended 31 December 2017 (9MFY18) from RM45.7 million recorded in the same period last year. The strong result was underpinned by solid performances from both its reinsurance and takaful subsidiaries, Malaysian Reinsurance Berhad (Malaysian Re) and Takaful Ikhlas Berhad (Takaful IKHLAS).
“Our strategic business approaches and initiatives are translating directly to accelerated growth across the Group,” said Mohd Din Merican, President & Group Chief Executive Officer of MNRB.
Malaysian Re’s Business Transformation Programme, T20 impacting positive results for the Company
“Rigorous business rationalisation activities implemented under Malaysian Re’s Business Transformation Programme, T20, have yielded positive impact to the company. This can be seen through its improved claims and combined ratios as well as improved underwriting surplus and net profits” added Mohd Din.
Malaysian Re’s net profit for 9MFY18 grew 64% to RM70.1 million as compared to RM 42.6 million recorded last year. The increase in net profit was contributed by Malaysian Re’s improvement in claims ratio of 65.5% as compared to 70.5% last year and higher investment income due to the favourable investment climate seen in 2017.
Takaful IKHLAS’ results improved
Takaful IKHLAS saw its 9 months net profit grew to RM31.9 million, as compared to RM7.5 million loss recorded in the previous year. This sharp turnaround came on the back of the higher wakalah fee from its General Takaful business, repricing of its Family Takaful products and various cost containment initiatives.
“We hope to see a sustainable growth in our Takaful business, particularly in our General Takaful segment with new products ready to be rolled out this year,” added Mohd Din.
Strengthening the Group’s retakaful business
Following the completion of MNRB’s internal restructuring process involving the transfer of the family and general retakaful businesses from MNRB Retakaful Berhad to Malaysian Re on 1 December 2017, the Group’s retakaful business is now being carried out by Malaysian Re through its retakaful division, Malaysian Re Retakaful Division (MRRD).
Through this new structure, the Group’s retakaful contribution had increased to RM28 million in 9MFY18 from RM17 million last year.
“Moving forward, we will continue to enforce strict underwriting discipline as we operate in this challenging business environment, and at the same time continue to implement the strategic initiatives for the benefit of the Group as a whole,” 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