KUALA LUMPUR, Aug 21 — Tune Protect Group Bhd posted a lower net profit or RM10.71 million in its second quarter ended June 30, 2019, compared to the RM12.81 million recorded a year earlier.
Among others, the digital insurer attributed the weaker bottom line to a decrease in net earned premiums of RM10 million and a RM5.2 million increase in management expenses.
In a filing with Bursa Malaysia today, it said revenue declined as well to RM124.46 million from RM141.26 million previously due to an RM18.9 million drop in gross earned premiums, which was offset by a RM2.1 million increase in investment income.
In the quarter under review, gross written premiums (GWP) increased 2.6 per cent year-on-year to RM125.2 million on higher GWP of RM107.4 million recorded by the group’s Malaysian general insurance subsidiary, Tune Protect Malaysia (TPM).
For the six-month financial period, Tune Protect’s net profit was slightly lower at RM29.05 million from RM29.38 million in the first half of 2018, while revenue eased to RM251.13 million from RM284.22 million.
Its GWP was down 20.3 per cent to RM207.6 million during the period, mainly due to the business portfolio restructuring exercise.
In a press statement, it said the business portfolio restructuring initiative aimed at achieving the preferred portfolio mix of 30 per cent motor and 70 per cent non-motor was part of the group’s strategy to ensure the sustainability and profitability of its Malaysian general insurance business.
“While TPM prudently manages its motor portfolio, it is also focusing towards growing the non-motor segment, specifically in retail, affinity and small medium enterprises/industries,” it said.
Meanwhile, the group’s reinsurance arm, Tune Protect Re (TPR), saw encouraging Europe, Middle East, India and Africa (EMEIA) sales via its business-to-business channel, with key markets like the United Arab Emirates and Saudi Arabia registering “compelling growths.”
Group chief executive officer Khoo Ai Lin said the group foresaw that the economic and insurance landscape would continue to be challenging in the region.
“To drive future growth, the group will intensify its efforts on delivering its key transformational pillars in Asean business, AirAsia ecosystems, insurance technology (insurtech) capabilities and national business to contribute towards underwriting profits and other incomes leveraging on insurtech,” Ai Lin added. — Bernama
