Malaysian lifestyle insurance group Tune Protect has revealed its second quarter financials, underscoring a third consecutive quarter of profits and more than 100% growth YoY for its profits after taxes.
In total, the insurer recorded RM11.2 million in profits after taxes, as well as RM15 million in investment income and RM10.9 million in insurance services, mainly attributable to its general insurance segment.
Excluding the one-off results of the Tenang scheme which was recently discontinued, Group CEO Rohit Nambiar (pictured) said that the group attained healthy growth in the quarter across all three main business pillars: health, lifestyle, and SME.
“Excluding the Tenang scheme, the group grew in Net Written Premium (“NWP”) across all the main pillars. Overall, NWP increased 14% YoY, driven by the growth in AirAsia travel business by 48% YoY and motor business by 42% YoY. Furthermore, 2Q23 travel premiums were 2% higher than pre-COVID-19 levels in 2Q19,” Nambiar said.
Overall, the lifestyle segment fell by 4%, accounting for the effects of the Tenang scheme. The SME pillar also declined by 2%, while the health division retained last year’s performance figure. Tune Protect’s commercial front, on the other hand, grew by 11% YoY following the planned exit from a low retention large corporate account last year.
Insurance revenue also fell by 15.7% YoY, attributable to the weaker performance of the fire and personal accident (PA) lines. In total, insurance business for the first half year registered revenue of RM224.1 million, a figure in line with 2022’s.
“We are confident of generating a decent return on our investments, especially from the money market and fixed income. The Malaysian bond market has also rallied significantly and that has benefitted our portfolio. We will continue to maintain our conservative asset allocation for now. However, we will constantly assess our portfolio and remain vigilant on capital market developments,” Nambiar said.
Elsewhere in the country, Allianz Malaysia also posted robust financial results for the second quarter of the financial year 2023, achieving RM1.16 billion in insurance revenue and contributing to a total business volume of RM2.33 billion for the first half of the year.
What are your thoughts on this story? Please feel free to share your comments below.
