MNRB GROUP RECORDED 7.9% HIGHER PROFIT IN ITS FIRST HALF YEAR
Group continues to record encouraging results despite impact of COVID-19
Kuala Lumpur, 30 November 2020 – MNRB Holdings Berhad (MNRB) recorded an improved overall earnings for its first six months results ended 30 September 2020 (1H FY2021). The Group’s gross premiums and takaful contributions rose 6.5% to RM1.14 billion in 1H FY2021 from RM1.07 billion recorded in 1H FY2020. MNRB’s Group net profit increased by 7.9% to RM93.2 million as compared to RM86.4 million recorded previously.
Commenting on the encouraging results, Zaharudin Daud, MNRB’s newly appointed President & Group Chief Executive Officer said, “I am pleased to say that MNRB Group had continued to pull through and remain resilient for 1H FY2021 amidst the challenging environment and the ongoing pandemic. We managed to navigate the first half of the financial year while operating our businesses under the various restrictions under the Movement Control Order (MCO)”.
On its reinsurance subsidiary, Malaysian Reinsurance Berhad (Malaysian Re), the company registered a 5.9 % increase in its Gross Premium to RM671.5 million from RM634.2 million registered in the same period last year which was mainly contributed by its overseas business. Commenting on Malaysian Re’s overseas business, Zaharudin said, “Our plans to rebuild our overseas reinsurance business is bearing fruit and we expect the momentum to continue in subsequent quarters”.
Malaysian Re’s net profit registered lower at 5.8% to RM46.9 million as compared to RM49.8 million recorded previously. This came on the back of lower net investment income due to the challenging investment climate affected by COVID-19. However, the lower investment income was offset by the Company’s improved underwriting result of RM11.6 million, compared to a deficit in the same period last year.
Meanwhile, the Group’s family takaful subsidiary, Takaful Ikhlas Family Berhad (Takaful IKHLAS Family), recorded lower Gross Contribution of 8.3% to RM 264.0 million in 1H FY2021 from RM287.8 million recorded previously. Its net profit declined to RM13.6 million as compared to RM34.6 million recorded in the same period last year.
“1H FY2021 characterises a complex business setting with the pandemic exacerbated by the MCO in Malaysia. The adaptation of ‘new normal’ had set some limitations to our business operations and this in turn had affected Takaful IKHLAS Family’s business activities and performance during the period under review. To overcome this, we have put in place new strategies to improve the growth momentum of our family takaful business”, said Zaharudin.
The Group’s general takaful arm, Takaful Ikhlas General Berhad (Takaful IKHLAS General) registered a 41.7% increase in its Gross Contribution to RM204.2 million for 1H FY2021 from RM144.1 million recorded in the same period last year. This growth was driven by all segments, namely Agency, Bancatakaful and Corporate. Takaful IKHLAS General also recorded a surge in its net profit to RM15.7 million from RM8.7 million recorded in 1H FY2020 driven by higher wakalah fee income in line with the higher gross contribution.
MNRB also saw its Group net investment income affected by the volatile market. “The COVID-19 outbreak had indeed impacted the global financial market as a whole. The repercussions of this situation, which include weakening market and overall low interest environment, had put a strain on our investment portfolios. Hence on the investment side, 1H FY2021 saw MNRB Group’s net investment income reduced 16.5% to RM265.0 million from RM317.2 million previously”, said Zaharudin.
Moving forward, Zaharudin said, “The MNRB Group will continue to work conscientiously despite the ongoing global pandemic and uncertain environment. We continue to emphasise on the sustainability of growth of MNRB Group through excellent customer service, diversification of our products, enhancement of distribution channels and accelerating our digital and technological platforms to ensure that the Group stays robust and relevant in this rapid and ever-changing operating landscape”.