MNRB Holdings’ 2Q net profit surges to RM42mil

KUALA LUMPUR: MNRB Holdings Bhd’s net profit surged to RM41.57 million in the second quarter (2Q) ended Sept 31, 2023, from RM13.46 million in the corresponding quarter last year.

In a filing with Bursa Malaysia today, MNRB said its revenue also increased to RM935.23 million from RM777.13 million previously.

As for the first six months of its current fiscal year, the group recorded a net profit of RM111.11 million against a net loss of RM9.71 million in the prior year’s period.

It said the gain was mainly due to the improved underwriting performance of the reinsurance and general takaful businesses as a result of better claims experience, increased investment income and favourable fair value movement of investments, and positive share of results of associates compared to a share of loss in the corresponding period.

Its revenue jumped 18 per cent to RM1.80 billion as against RM1.53 million previously, contributed by the increase in takaful revenue on the back of strong growth in the general takaful and reinsurance businesses.

For the reinsurance business segment, its operating revenue for the period increased by 19.2 per cent or RM167 million to RM973.5 million versus RM836.6 million previously, MNRB said.

This was mainly due to the insurance revenue growth as driven by specialty business, domestic treaties and overseas treaties from the Middle Eastern and North African business portfolios.

The operating revenue of the retakaful business grew by RM10.3 million, primarily due to the increase in the family retakaful revenue, while the general takaful business posted a 36 per cent higher operating revenue at RM356.1 million versus RM261.8 million previously, driven by the agency channel and motor segment.

Moving forward, MNRB expected further revenue growth in light of the country’s economic trajectory and the group’s ongoing strategic initiatives.

Despite the challenges, the group was optimistic that the firm foundation of its business diversification, coupled with the effective implementation of its strategic plan, would propel the growth trajectory outlined in its business plan.

“The group’s efforts continue with the enhancement of our sustainability roadmap, which defines essential action plans for mitigating climate risk, advancing social initiatives, and meeting governance standards to ensure business sustainability,” it said.

MNRB had declared a final single-tier dividend of 4.45 sen (2022: 2.5 sen) per ordinary share on 783 million ordinary shares, amounting to RM34.85 million for the financial year ended March 31, 2023.

The approved final dividend was paid on Oct 31, 2023, and the entitlement date for the dividend payment was Oct 11, 2023. – BK