Tune Protect Group Berhad Tune Protect Group Bhd has posted a lower net profit of RM2.50 million for the first quarter ended March 31, 2020 (Q1 2020) compared with RM18.34 million in the same period last year.
Its Profit After Tax was at RM 2.8 million with Operating Revenue of RM 122.4 million and Gross Written Premiums of RM 113.2 million.
The Group’s PAT and OR declined by 86.2 percent and 3.4 percent respectively while its GWP decreased 3.8 percent YoY.
“The lower 1Q2020 PAT is a factor of the decrease in travel business, lower underwriting profit and unrealised imvestment loss due to weaker performance in the fixed income market, whilst the drop in GWP is parttly due to a decline in its travel business recorded by Tune Protect Re, the Group’s reinsurance arm,” the company said.
This decrease also aligned to the reduction in air travel demand and a decrease in the Motor line of business.
TPR had managed to record a PAT of RM 7.8 million in 1Q2020. On a YoY basis, TPR’s PAT declined by 37.8 percent attributed to lower travel demand in Asia and Middle East.
TPM on the other hand recorded a minor decrease in GWP by 2 percent to RM 98.2 million compared to the same period a year ago, mainly due to the lower Travel Personal Accident (TPA) and Motor portfolios, partially offset by the growth in the commercial and retail Non-Motor classes of business.
1Q2020 PAT decreased to RM0.5 million mainly due to unrealised
investment loss as well as lower underwriting profit.
The Group’s 1Q2020 overseas ventures recorded a share of loss of RM1.9 million, versus a share of profit of RM1.0 million in 1Q2019.
The decline is mainly due to unrealised investment losses by Tune Protect Thailand (‘TPT’), the Group’s associate company in Thailand, and the lower premiums from Tune Protect EMEIA (‘TP EMEIA’), the Group’s joint venture company in Dubai, the United Arab Emirates.
“The Covid-19 outbreak has affected many businesses and industries globally, and Tune Protect was not spared. However, the Group remains resilient with a healthy capital position and adequate liquidity to weather the uncertainties that lie ahead.” said
Khoo Ai Lin (‘Ai Lin’), Group Chief Executive Officer of Tune Protect.