Tune Protect Group Berhad has reported a Profit After Tax (“PAT”) of RM1.6 million for 4QFY2020 with Gross Written Premiums (“GWP”) and Net Earned Premiums (“NEP”) set at RM82.2 million and RM52.8 million, respectively.
The revenue of travel growth is largely driven by the rebound of the travel industry and increased awareness of Travel insurance in the Middle East and ASEAN.
“Given the challenges posed by the pandemic on the economy globally, we accelerated our diversification strategy in Lifestyle (including Travel), Health, SME and other classes to remain resilient. This led us in good stead as we were able to capture new opportunities,” Rohit Nambiar, Group Chief Executive Officer of Tune Protect said.
Meanwhile, the quarter-on-quarter (“QoQ”) increase in GWP and NEP, by 5.4 percent and 22.3 percent respectively was driven by travel recovery in the Middle East, while the QoQ decrease of 68.2 percent in PAT was attributed to higher management expenses because of a one off provision for impairment for insurance and reinsurance receivables.
TPR (RM’ mil) 4Q2020 3Q2020 QoQ% 4Q2019 YoY% GWP 26.8 11.4 >100 24.7 +8.3 NEP 24.7 11.2 >100 25.1 -1.8 PAT (0.3) 2.6 >- 100 6.2 >-100
Meanwhile for 4QFY2020 and the full year 2020, Tune Protect Re (TPR) showed improved performance and growth. TPR saw RM2.1 million and RM15.4 million growth during the year, representing 8.3 percent and more than 100 percent GWP increase.
Together with Tune Protect EMEIA (“TP EMEIA”), the Group’s travel assurance digital facilitator in the Middle East, TPR experienced a higher take-up of Covid- 19 Plus Extension products from the B2B segment that were launched in the second half of 2020.
Tune Protect has also set in motion a new strategy as it aspires to be the Lifestyle Insurer. Moving forward, the Group aims to build on its health, lifestyle, and SME business pillars with a lineup of product and proposition while leveraging on the AirAsia ecosystem and accelerating digital and affinity partnership in ASEAN. This year, the group started strong and is on track to establish more than 10 partnerships across ASEAN and middle east.
“Despite the pandemic odds stacked against us and the rest of the industry, Tune Protect foresees a promising future from ASEAN and the Middle East in the Health, Lifestyle and SME pillars. Furthermore, as already seen in 1Q2021, we look forward to more related digital and affinity partnership plans to come to fruition in 2021 to push us forward to become the lifestyle insurer that everyone loves in ASEAN,” Rohit concluded.
