KUALA LUMPUR: MNRB Holdings Bhd’s (MNRB) net profit rose 7.8 per cent to RM93.2 million in the first six months ended September 30 2020, from RM86.4 million reported a year ago.
Group revenue stood at RM1.27 billion in 2020, up from RM1.21 billion reported in the corresponding period last year.
The RM62.1 million increase was mainly attributable to higher gross premiums/contributions generated by the reinsurance and takaful subsidiaries, MNRB said in a statement today.
Newly-appointed president and group chief executive officer Zaharudin Daud said MNRB Group had continued to pull through and remain resilient for the first half of financial year 2021 amid the challenging environment and the ongoing pandemic.
“We managed to navigate the first half of the financial year while operating its businesses under the various restrictions under the Movement Control Order,” he added.
For the second quarter, MNRB’s net profit eased to RM42.4 million from RM48.5 million in the same period last year.
Group revenue, however, increased 7.48 per cent to RM706.8 million from RM 653.9 million previously.
On its reinsurance subsidiary, Zaharuddin said Malaysian Reinsurance Bhd (Malaysian Re) had registered a 5.9 per cent increase in 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.
“Our plans to rebuild our overseas reinsurance business is bearing fruit and we expect the momentum to continue in subsequent quarters,” he said.
The group’s family takaful subsidiary, Takaful Ikhlas Family Bhd, recorded lower gross contribution of 8.3 per cent to RM 264.0 million in the first half of 2021 (FY21) from RM287.8 million recorded previously.
Takaful Ikhlas; net profit declined to RM13.6 million from RM34.6 million a year ago.
“The adaptation of ‘new normal’ had set some limitations to our business operations and this in turn had affected Takaful Ikhlas’ 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”, said Zaharudin.
The group’s general takaful arm Takaful Ikhlas General Bhd registered a 41.7 per cent increase in gross contribution to RM204.2 million for the first half from RM144.1 million recorded in the same period last year.
The growth was driven by all segments, namely agency, bancatakaful and corporate.
Takaful Ikhlas General also recorded a surge in net profit to RM15.7 million from RM8.7 million recorded in the first half, driven by higher wakalah fee income in line with the higher gross contribution.
Zaharudin said MNRB Group would continue to work conscientiously despite the ongoing global pandemic and uncertain environment.
“We continue to emphasise on the sustainability of 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,” he added.