MNRB net profit at 50-year high in FY24

PETALING JAYA: MNRB Holdings Bhd (MNRB) aims to continue pursuing growth in overseas markets and venture into specialised business lines for its reinsurance and retakaful segment.

The insurer and reinsurer topped the gainers’ list on Bursa Malaysia yesterday, surging 30%, which was its largest one-day gain, after it announced 50-year high earnings for the financial year ended March 31, 2024 (FY24).

Its net profit more than doubled to RM232.6mil in 4Q24 from RM94.95mil a year ago on the back of improved insurance services, better investment income as well as improved share of results of associates, the company said in a filing with Bursa Malaysia yesterday.

Revenue was also higher at RM816.7mil compared with RM637.9mil, while the group’s earnings per share rose to 29.71 sen against 12.12 sen in the same period.

For the full year, net profit rose to RM428.3mil from RM142.65mil in the previous year on the back of higher revenue of RM3.6bil versus RM2.97bil.

Chairman Datuk Johar Che Mat said one of the keys to the group’s success was the rollout of strategic initiatives across all business lines, wherein they were strategically planned with ongoing commitment to prioritise stakeholders’ interests and champion good governance or tatakelola.

“MNRB, through our reinsurance/retakaful subsidiary Malaysian Reinsurance Bhd, is not just mitigating currency outflows but bringing in foreign currency inflows into the country thereby contributing to the nation’s economic stability and increasing our global financial footprint,” he said.

Johar added the group would continue to look beyond Malaysia and leverage current opportunities in the hard market while preparing to surmount challenges in the upcoming soft market.

This year, the group made a comeback to the capital market with the issuance of its sukuk murabahah, garnering a five-fold oversubscription from a diversified investor base comprising banks, institutional investors and asset managers.

Additionally, the group’s total financial assets grew by 12.8% to RM11.4bil in FY24 compared to RM10.1bil in the previous year, reflecting prudent capital management and robust investment growth.

On its outlook, MNRB said the takaful segment has continue growing, driven by various initiatives to increasing sales through Agency, bancatakaful and corporate distribution channels.

“The group’s aim is to accelerate business growth and scale, while enhancing operational efficiency by leveraging on digitalisation measures to offer excellent customer experience and easy access to transactional online platforms,” the company said.

MNRB expected a challenging economic environment locally and globally as inflationary pressures around the world remain elevated amid soaring energy prices, supply chain shocks and geopolitical risks in the Middle East and Ukraine.

“With the overnight policy rate remaining at 3% for the rest of this year, a continuation of the group’s strategic approach to asset allocation focusing on high yielding securities with strong fundamentals, will continue to be integral to capital preservation for the group,” it said.