Kuala Lumpur, 28 February 2020 – MNRB Holdings Berhad (MNRB) recorded a 166.0% improvement in its 9 months Group Net Profit to RM94.4 million, from RM35.5 million recorded in the same period last year. This significant jump was contributed by strong performances by all its operating subsidiaries, namely Malaysian Reinsurance Berhad (Malaysian Re), Takaful Ikhlas Family Berhad (Takaful IKHLAS Family) and Takaful Ikhlas General Berhad (Takaful IKHLAS General).
MNRB also recorded improvements in Group Revenue, with Gross Premiums registering 10.9% growth during the first 9 months to RM1.6 billion, from RM1.5 billion during the same period last year. Additionally, the Group Net Investment Income for the first 9 months rose substantially by 102.8% to RM372.0 million from RM183.4 million last year, with total assets of RM9.2 billion as compared to RM8.7 billion in the corresponding period last year.
President & Group Chief Executive Officer of MNRB, Mohd Din Merican said, “Our significant improvement during the first 9 months underlines the strength of our investment performance and reflects the strong results of our operating subsidiaries, namely Malaysian Re, Takaful IKHLAS Family and Takaful IKHLAS General”.
On the performance of its reinsurance subsidiary, Malaysian Re’s 9 months Gross Premiums grew 9.2% to RM941.0 million from RM861.4 million in the same period last year, driven by positive impact from the Company’s strategy of growing its international business.
Malaysian Re’s 9 months net profit rose 52.4% to RM48.1 million from RM31.6 million in the corresponding period last year. This is primarily due to the much-improved result of the International portfolio as well as stable profit contribution by the Domestic market.
Malaysian Re had, in December last year, signed a Memorandum of Understanding (“MoU”) with a reputable international life reinsurer to provide sustainable retakaful solutions to Family Takaful Operators. This MoU would enable Malaysian Re to provide family retakaful solutions through its retakaful division, Malaysian Re Retakaful Division (“MRRD”) with support on technical pricing, underwriting, product development, experience analysis and global insights provided by the said international life reinsurer.
On the takaful segment, Takaful IKHLAS’ 9 months Gross Contribution rose by 13.3% to RM674.0 million, from RM595.0 million recorded in the same period last year, driven by its Bancatakaful and Agency businesses.
Takaful IKHLAS’ net profit for the first 9 months jumped to RM53.7 million from RM29.0 million, largely contributed by the substantial increase in investment income, due to appreciation in the value of its investments in Sukuks.
During the financial period, Takaful IKHLAS Family had implemented various strategic initiatives to strengthen its business. These include securing a partnership with Manulife Insurance Berhad as well as recruitment of 50 Takaful Specialists to promote its Advisory Products through Bancatakaful channel.
Takaful IKHLAS General continues to engage with insurtech partners to develop innovative products and solutions for its customers. Earlier this year, Takaful IKHLAS General participated in a pilot program which involves using telematics to offer safe drivers with rebates for their motor takaful covers.
“We will continue to implement the strategic moves that we have put in place to drive profitable growth for the Group as a whole. Our focus is set on diversifying business portfolios, enhancing product offerings and improving customer experience for us to stay relevant in this competitive and volatile sector”, said Mohd Din Merican.