Kuala Lumpur, 1 September 2021 – MNRB Holdings Berhad (MNRB) has announced its financial results for the first quarter ended 30 June 2021 (Q1 FY2022). Despite the challenges imposed by the ongoing resurgence of COVID-19 cases and the reinstatement of Movement Control Order (MCO), the Group delivered a 34.9% increase in its Gross Written Premiums and Takaful Contributions to RM675.4 million as compared to RM500.8 million recorded in the same period last year. MNRB’s Group Net Profit however, declined slightly by 8.3% to RM46.6 million from RM50.8 million recorded in the corresponding quarter last year.
Commenting on the performance of MNRB Group for the period under review, Zaharudin Daud, President & Group Chief Executive Officer of MNRB said, “The impact arising from the COVID-19 pandemic including the emergence of the new Variants of Concern (VOC) will continue to cause challenges to our operating landscape. Despite this, our operating subsidiaries continued to persevere and focused on operational resiliency and as a result, contributed to the growth in our Gross Premiums and Takaful Contributions”.
Malaysian Re continues its overseas expansion
Malaysian Reinsurance Berhad (Malaysian Re), the Group’s reinsurance subsidiary, registered a 30.1% increase in Gross Premiums to RM421.0 million as compared to RM323.7 million registered in the same period last year. This was primarily driven by growth from the overseas business segment. Its Net Profit registered lower by 32.4% to RM23.8 million against RM35.2 million in Q1 FY2021, mainly due to lower net investment income attributed to the weakened equity market.
Zaharudin further added, “Malaysian Re continued to demonstrate solid growth trajectory by recording its highest first quarter premium of RM421.0 million. As we advance further in FY2022, we shall capitalise on opportunities to grow our business in the overseas markets as their businesses re-open after positive progress in containing the pandemic”.
Higher Gross Contributions for Takaful IKHLAS General
The Group’s general takaful arm, Takaful Ikhlas General Berhad (Takaful IKHLAS General)’s Gross Contributions grew 23.0% to RM94.0 million in Q1 FY2022 from RM76.4 million in Q1 FY2021, mainly contributed by growth in the Agency and Bancatakaful channels. Its Net Profit however, declined by 18.3% to RM5.8 million from RM7.1 million recorded in the same period last year mainly due to lower net investment income and higher acquisition expenses.
Takaful IKHLAS Family charting growth in Q1 FY2022
Q1 FY2022 saw the Group’s family takaful business recorded substantial improvements in its performance. Takaful Ikhlas Family Berhad (Takaful IKHLAS Family)’s Gross Contributions increased by 58.6% to RM161.9 million from RM102.1 million recorded in Q1 FY2021, which was largely contributed by recovery in the credit-related business from its Bancatakaful channel. New Business for Takaful IKHLAS Family, as measured by Annual Contribution Equivalent, rose by 97.8% to RM18.4 million from RM9.3 million in Q1 FY2021. Its Net Profit grew substantially by 411.5% to RM13.3 million from RM2.6 million in Q1 FY2021 which came on the back of higher wakalah fee due to growth in Gross Contributions.
“Our takaful businesses remained resilient and carried out relentless efforts including launches and campaigns of new products, such as our new Cancer Rider. At the same time, we also observed a higher participation in our products as we see that Malaysians are more aware of the importance of getting takaful protection amidst the current uncertain environment,” said Zaharudin.
Outlook for FY2022
Commenting on the outlook for MNRB Group, Zaharudin said, “The Group is cognizant of the risk from the Delta variant which may potentially hinder the economic recovery globally. Nevertheless, we remain hopeful with the National Recovery Plan adopted by the Government as well as the speed of our country’s vaccination rate in driving the country’s economic recovery. In view of this development, MNRB Group continues to strengthen our businesses and prepare for the expected economic recovery to ensure we emerge stronger collectively in FY2022 while continuing to carefully mitigate the setbacks from the ongoing COVID-19 pandemic”.
MNRB has recently announced the payment of a final single-tier dividend of 4.0 sen per share for its financial year ended 31 March 2021, amounting to approximately RM31.3 million, which is subject to shareholders approval at the forthcoming Annual General Meeting.