Kuala Lumpur, 27 November 2017 – MNRB Holdings Berhad (MNRB) reported higher net profit for the first six-month period ended 30 September 2017. The net profit for the first half of FY2018 grew to RM71 million from RM38 million recorded in the corresponding period of the previous financial year. The result was supported mainly by the improvement in net profits from the Group’s main business activities; the reinsurance and takaful businesses.
Malaysian Reinsurance Berhad (Malaysian Re) maintains positive growth
The Gross Premium for the Group’s reinsurance subsidiary, Malaysian Re, grew from RM646 million to RM676 million. This modest growth in the top line was achieved despite being selective in the acceptance of business from its overseas counterparts, as well as non-renewal of more than RM100 million of businesses from unprofitable segments, in line with its Business Transformation 2020 (T20) programme launched late last year.
Malaysian Re’s net profit increased to RM49 million from RM15 million recorded in the same period last year. “The improvement in Malaysian Re’s net profit was driven by T20. As a result, in this first six-month period, Malaysian Re had showed outstanding improvements in its claims ratio, better underwriting surplus and higher net investment income” said Mohd Din Merican, President & Group Chief Executive Officer of MNRB.
Takaful Ikhlas Berhad (Takaful IKHLAS) maintaining growth momentum
Takaful IKHLAS, MNRB’s takaful subsidiary, also recorded an increase in net profit of 144% to RM22 million from RM9 million last year. The higher net profit came on the back of the increase in wakalah fees from the both its General and Family Takaful businesses.
Mohd Din added, “Takaful IKHLAS is on track to achieve its RM1 billion target of Gross Contribution. This will translate to a higher wakalah fee, and directly contribute to our bottom line”.
“We have delivered solid results in the second quarter which demonstrated our improved business approach and operations. We are optimistic that the good results will continue in the remaining two quarters. Nevertheless, we shall continue to remain selective with our business expansion plan to ensure sustainability in our future profits.” Mohd Din said.
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 http://www.mnrb.com.my