Malaysia National Reinsurance Holdings Berhad (MNRB) has announced its financial results for the first quarter ended 30 June 2024 (1QFY25).

The group reported a 32.7% increase in net profit to RM92.2 million from RM69.5 million in the same period last year. The growth was attributed to stronger results from insurance and takaful services, largely driven by improved claims experience.

During the first quarter of FY25, MNRB’s revenue remained stable at RM941.1 million, down marginally by 0.4% from RM945.3 million in the previous year. The stability in revenue was achieved through strong growth in general takaful and reinsurance/retakaful businesses, which offset the decline in family takaful revenue.

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The group also reported an increase in investment income, which stood at RM109.4 million, compared to RM96.5 million in the same period last year. This was driven by a 10% increase in asset size, particularly in fixed income, deposits and equities.

MNRB’s annualized return on equity increased to 12.6%, compared to 10.1% in Q1 FY24, reflecting the group’s improved performance during the period.

Malaysia Re Results

Malaysia Reinsurance Corporation (Malaysia Re), the reinsurance/takaful arm of Malaysian Reinsurance, continued its positive momentum from the tough market last year. The Malaysian reinsurer recorded a net profit of RM86.1 million in 1QFY25, up 38.2% from RM62.3 million in 1QFY24.

This growth was supported by improved insurance services results as a result of an improved claims experience, as well as the company’s strategic focus on international and involuntary ceding (VC) businesses.

Read more: Malaysian Re and Pacific Life Re extend MoU on sustainable retakaful solutions

The Malaysian reinsurer also expanded its international business during the first quarter of FY25, with gross written premium and gross written contribution (GWP/GWC) growing by 5.4% to RM586.7 million, up from RM556.8 million in the same period last year.

Takaful Ikhlas results

Takaful Ikhlas, which consists of Takaful Ikhlas General Berhad and Takaful Ikhlas Family Berhad, reported a 39.2% increase in net profit to RM16.7 million, compared to RM12.0 million in the same period last year. The increase was driven by higher agency fees, although takaful revenue declined 1.2% to RM406.6 million, mainly due to results in the family takaful segment.

The fire and motor insurance business in the general takaful sector, along with regular contributions in the family takaful sector, witnessed steady growth, supported by an increase in new individual business.

MNRB Outlook

MNRB Chairman Datuk Johar Che Mat (pictured above) commented on the group’s outlook for the financial year, noting that MNRB is committed to driving revenue growth and enhancing profitability while managing capital efficiently.

He stressed that strategic initiatives are being implemented in both the wholesale and retail sectors, including reinsurance/retakaful and general takaful businesses, as well as amendments to the family takaful business model.

Datuk Johar also stressed that while the group has an overarching strategy, each business unit will also focus on implementing specific strategies to support long-term sustainable growth and deliver value to stakeholders.

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