MNRB Holdings Berhad (MNRB) recorded improved overall earnings for its first six months results ended September 30 (1H FY2021). The Group’s gross premiums and takaful contributions rose 6.5 percent to RM1.14 billion in 1H FY2021 from RM1.07 billion recorded in 1H FY2020.
MNRB’s Group net profit increased by 7.9 percent to RM93.2 million as compared to RM86.4 million recorded previously.
“I am pleased to say that MNRB Group has 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),” Zaharudin Daud, MNRB’s newly appointed President & Group Chief Executive Officer said.
On its reinsurance subsidiary, Malaysian Reinsurance Berhad (Malaysian Re), the company registered a 5.9 percent 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 percent 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 a lower Gross Contribution of 8.3 percent 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”, Zaharudin highlighted.
The Group’s general takaful arm, Takaful Ikhlas General Berhad (Takaful IKHLAS General) registered a 41.7 percent 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 the 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 percent to RM265.0 million from RM317.2 million previously”, Zaharudin stated.
“The MNRB Group will continue to work conscientiously despite the ongoing global pandemic and uncertain environment.
We continue to emphasise the sustainability of the 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,” Zaharudin added.