Tune Protect Group Berhad posts its Gross Written Premiums (GWP) of RM171.3 million with Operating Revenue (OR) of RM142.9 million and Profit After Tax (PAT) of RM18.2 million for the first quarter of 2018. Strong first quarter results were attributed to positive top-line growth with GWP and OR increasing by 5.2% and 9.8% year-on-year respectively. The 36.3% growth in PAT was achieved due to improvements in underwriting performance, better collections, more efficient processing of claims and Digital Global Travel’s lower marketing expenses. GWP growth was contributed primarily from the Digital Global Travel business and growth in the existing Motor portfolio in the General Insurance business.
With an increased focus on the digital sector, Digital GWP increased by 13.0%, outpacing non-digital growth which was recorded at 3.7% this quarter. The total number of customers and policies issued for the digital sector increased by 73.8% and 90.8% year-on-year respectively with the GWP representing 16.8% of The Group total. The growth is largely attributed to the Digital Global Travel business and Tune Protects’s direct-to-consumer products.
Group Chief Executive Officer of Tune Protect, Razman Hafidz Abu Zarim says, “We continue to be confident in the growing strength of our digital sector, and we are diligent in optimising algorithms to further personalise offers leading to higher take-up rates. Our investment strategies have also yielded favourable results thus expanding our OR.”
Digital Global Travel business recorded their highest quarter since 3Q2016 with a recorded GWP of RM29.1 million. This increase is mainly contributed by both comprehensive and bundled insurance in the Air Asia segment. For Malaysia, the General Insurance Business achieved 4.2% GWP growth to RM155.1 million and 20.3% PAT growth to RM9.5 million driven by higher underwriting profit of RM7.1 million year-on-year. The growths were derived from the Motor portfolio, followed by Personal Accident and Travel. PAT was significantly higher due to stronger underwriting profit, following improved claims processing and collections. Despite Net Earned Premiums (NEP) for Motor decreasing by 22.5% due to the higher Quota Share, Non-Motor NEP grew 10.0% in line with the company’s aspiration to grow the more profitable segments of the business.
For Thailand, the General Insurance Business achieved 24.7% PAT year-on-year growth due to higher GWP from Travel portfolio and lower net claims incurred. The Group has recently secured their 5th airline partner, Kuwait based Wataniya Airways, a low-cost carrier that flies to 10 countries across the Middle East. This closely followed the launch of Cambodia Angkor Air partnership that went live on 23 March 2018 for the Cambodia, China and Vietnam markets via B2B channels.