KUALA LUMPUR: Tune Protect Group Bhd has posted a net profit of RM13 million in the second quarter ended June 2017, more than halved the RM26.5 million recorded in the same period a year ago mainly due to larger than expected increases in motor claims cost and subdued topline of its Digital Global Travel.
“Despite the decline, we are encouraged by the growth of our topline. Gross Written Premiums is up by 11.3 per cent which was driven by our motor, offshore oil, and engineering, as well as Middle East travel businesses,” said group chief executive officer Razman Hafidz Abu Zarim.
To alleviate the higher costs of motor claims that continue to impact the Malaysian general insurance business, Razman said it has redirected car repairs to non-franchise panel workshops to minimise the cost.
“We are also revising the way we evaluate franchise vehicles that have higher loss exposure, and reviewing Beyond Economic Repair level to curb total loss exposure,” he added.
Razman said the company is optimistic with the lineup of initiatives to improve its financial performance although it would only expect to see the positive impact in financial year 2018 and at earliest, the fourth quarter of this year.