MNRB’s revenue grows to RM743m in 1Q22

The reinsurer recorded a 34.9% increase in its gross written premiums and takaful contributions to RM675m

by LYDIA NATHAN

MNRB Holdings Bhd’s revenue jumped 30.2% to RM743 million for its first quarter ended June 30, 2021 (1Q22), compared to RM570.5 million in the corresponding quarter last year, driven by higher gross premiums and contributions by its reinsurance and takaful subsidiaries.

The reinsurer recorded a 34.9% increase in its gross written premiums and takaful contributions to RM675.4 million, versus RM500.8 million in 1Q21, despite the challenges brought on by the resurgence of Covid-19 cases and the reinstatement of Movement Control Order.

Its 1Q22 net profit, however, fell 8.3% to RM46.6 million from RM50.8 million posted last year.

“The impact arising from the Covid-19 pandemic, including the emergence of the new variants of concern, will continue to cause challenges to our operating landscape.

“Despite this, our operating subsidiaries continued to persevere and focused on operational resiliency and as a result, contributed to the growth in our gross premiums and takaful contributions,” MNRB president and group CEO Zaharudin Daud (picture) said in a statement.

The group’s reinsurance subsidiary, Malaysian Reinsurance Bhd (Malaysian Re), registered a 30.1% increase in gross premiums to RM421 million compared to RM323.7 million registered in the same period last year, driven by growth from the overseas business segment.

Its net profit was lower by 32.4% to RM23.8 million, against RM35.2 million in 1Q21, mainly due to lower net investment income attributed to the weakened equity market.

“Malaysian Re continued to demonstrate solid growth trajectory by recording its highest 1Q premium of RM421 million.

“As we advance further in the financial year 2022 (FY22), we shall capitalise on opportunities to grow our business in the overseas markets as their businesses reopen after positive progress in containing the pandemic,” Zaharudin stated.

MNRB’s general takaful arm, Takaful Ikhlas General Bhd, saw gross contributions grow 23% to RM94 million in 1Q22 from RM76.4 million in the same period last year, mainly contributed by growth in the agency and bancatakaful channels.

Its net profit declined 18.3% to RM5.8 million on the back of lower net investment income and higher acquisition expenses.

Takaful Ikhlas Family Bhd’s gross contributions increased by 58.6% to RM161.9 million from RM102.1 million last year, largely contributed by recovery in the credit-related business from its bancatakaful channel.

“Our takaful businesses remained resilient and carried out relentless efforts, including launches and campaigns of new products, such as our new cancer rider. At the same time, we also observed higher participation in our products as we see that Malaysians are more aware of the importance of getting takaful protection amid the current uncertain environment,” Zaharudin added.

He said the group would remain hopeful with the National Recovery Plan and the speed of the country’s vaccination rate in driving the country’s economic recovery.

“In view of this development, MNRB Group continues to strengthen our businesses and prepare for the expected economic recovery to ensure we emerge stronger collectively in FY22 while continuing to carefully mitigate the setbacks from the ongoing Covid-19 pandemic,” he said.

The group declared the payment of a final single-tier dividend of four sen per share for FY21, amounting to approximately RM31.3 million, subject to shareholders approval at the forthcoming AGM.

MNRB shares ended 1.48% lower to RM1.33, valuing the company at RM1.04 billion.