Kuala Lumpur, 28 May 2021 – MNRB Holdings Berhad (MNRB) today announced commendable results for its Financial Year Ended 31 March 2021 (FY2021). Despite operating in a challenging business landscape, FY2021 saw MNRB record its highest ever Group Net Profit of RM189.5 million, a 42.6% growth as compared to RM132.9 million in the previous financial year. The Group also recorded a 13.0% increase in Gross Premiums and Takaful Contributions to RM2.6 billion as compared to RM2.3 billion recorded in the previous financial year.
Commenting on the performance, Zaharudin Daud, President & Group Chief Executive Officer of MNRB said, “The Group’s agility and resilience enabled it to weather through the many challenges that had arisen due to the on-going pandemic. The results were due to the strong contribution from all our operating subsidiaries and associates amidst the difficult operating environment. Our focus on operational resiliency has contributed positively to this revenue growth and strong return to our stakeholders”.
The Group’s reinsurance subsidiary, Malaysian Reinsurance Berhad (Malaysian Re) recorded 7.7% increase in Gross Premiums to RM1.4 billion from RM1.3 billion in the preceding financial year, mainly due to the positive contribution from both overseas and domestic markets. Malaysian Re’s Net Profit surged 38.1% to RM133.1 million from RM96.4 million in FY2020 largely contributed by its higher investment income and underwriting surplus.
Zaharudin further added, “Malaysian Re demonstrated continued progress in FY2021 and marked a new milestone by hitting a RM1.4 billion premium, with more than RM600 million coming from the overseas business”.
FY2021 also saw Malaysian Re’s increasing participation in industry-wide initiatives for its Corporate Responsibility programmes which include administering the COVID-19 Test Fund (CTF) and is also currently the industry’s project manager for Perlindungan Tenang Voucher Fund, a national microinsurance initiative.
The Group’s general takaful business, Takaful Ikhlas General Berhad (Takaful IKHLAS General)’s Gross Contribution grew significantly by 35.8% to RM468.8 million in FY2021 as compared to RM345.2 million in the preceding financial year. Its Net Profit soared 35.0% to RM27.4 million from RM20.3 million in the same period last year mainly driven by a combination of business growth and better operational efficiencies.
Takaful Ikhlas Family Berhad (Takaful IKHLAS Family), the Group’s family takaful business, recorded an improved Gross Contribution of 11.2% in FY2021 to RM687.5 million from RM618.0 million in FY2020. Its Net Profit however, declined by 56.3% to RM19.5 million in FY2021 from RM44.6 million recorded last year due to lower Fair Value Gain from its investment portfolio.
“Takaful IKHLAS had shown strong resilience in the current operating landscape and delivered an improved business performance in FY2021. Takaful IKHLAS will continue to effectively manage the impact of the pandemic to sustain its progress while at the same time engage closer with the customers as they are the forefront of the business”, said Zaharudin.
On the investment side, the MNRB Group Net Investment Income in FY2021 dropped by 21.1% to RM283.3 million from RM359.7 million recorded in the previous year. This was largely due to fair value losses arising from the increase in bond yields and the corresponding decrease in bond prices.
Commenting on the Group’s strategy for its new financial year, Zaharudin said, “As the industry further grapples with challenges due to the ongoing global pandemic, we shall continue to enhance our operational agility and prepare for opportunities that will arise from any shift in the current operating environment. This is to ensure that we continue to generate profitable business and greater value for our customers and stakeholders. On that note, we are also focusing on strengthening our talents, delivering improved customer experience and enhancing our digital and technological platforms for this new financial year. We hope that by empowering our people, the Group will be ready to steer the challenges of the coming year”.