Tune Protect Group has reported a net profit of MYR10.99 million (US$2.63 million) for the third quarter of 2019. This represents a 20.4% growth year-on-year, from MYR9.13 million (US$2.19 million) for the same period last year.
While the Malaysia-based insurance group’s profits rose, its revenue fell by 12.5% to MYR123.84 million from MYR141.49 million previously, Edge Markets reported, citing a stock exchange filing by the insurer.
According to the report, the decrease in revenue was attributed to lower gross earned premiums, which fell by MYR18.8 million. Motor insurance contributed around a third of the decline, with premiums lower by MYR6.4 million. Non-motor insurance comprised the remainder of MYR12.4 million, mostly from the marine hull, worker’s compensation, and offshore oil and gas classes of general insurance business.
“This was offset by an increase of MYR1.1 million in investment income, mainly due to dividend income received from unit trust funds and share of investment income from the Malaysia Motor Insurance Pool,” the filing said.
Tune Protect expects a challenging fourth quarter, due to a highly competitive insurance sector and slowing economic growth.
“The group endeavours to deliver a similar level of profits as in the past financial year,” Tune Protect added.
“The group continues to journey on the initiatives essential to drive the group's key transformation pillars in ASEAN business, AirAsia ecosystems, insurtech capabilities, and national business.”
