KUALA LUMPUR (Aug 30): MNRB Holdings Bhd has recorded a net loss of RM13.27 million in the first quarter ended June 30, 2022 (1Q 2022) compared to a net profit of RM46.57 million a year ago due to the volatility of the financial markets which contributed to lower investment income.
However, its revenue rose to RM842.84 million, an increase of 13% from RM743.03 million previously, contributed by higher gross premiums or contributions of RM100.9 million or 14% generated by the reinsurance and takaful subsidiaries.
President and group chief executive officer Zaharudin Daud said the weaker performance of the group was also affected by the increase in claims reserves attributed to the floods of December 2021.
“Nonetheless, despite these headwinds, we have seen momentum in the economic recovery as the nation progresses into endemicity.
“We remain hopeful of the outlook for the group while continuing to remain steadfast in driving business growth,” he said in a statement on Tuesday.
Zaharudin also said the floods had also imposed a significant impact on the group’s reinsurance subsidiary, Malaysian Reinsurance Bhd’s (Malaysian Re) performance for the period under review as a result of an increase in claims reserves.
“Despite this, Malaysian Re remains committed to supporting the industry in coping with the after-effects of this devastating flood incident,” he said.
Meanwhile, he said the group’s family takaful business, Takaful Ikhlas Family Bhd (Takaful IKHLAS Family), will continue to expand its reach to serve more Malaysians with comprehensive and innovative takaful protection products while maintaining its efforts to improve customer experience.
He also said the group’s general takaful arm Takaful Ikhlas General Bhd’s net profit increased to RM6.7 million from RM5.8 million previously, on the back of significant improvement in its gross contributions.
Moving forward, Zaharudin said MNRB remains focused on its initiatives to accelerate growth and deliver sustainable business value as well as continues to expedite digital transformation to deliver a better customer experience and ensure improved operational efficiency.
“We expect our businesses to grow further through the introduction of new products and geographical expansion,” he said.