KUALA LUMPUR: MNRB Holdings Bhd's (MNRB) gross written premiums (GWP) and takaful contributions increase 16.7 per cent to RM2.1 billion for the nine-month (9M) period ended 31 December 2021 (FY22) from RM1.8 billion recorded in the same period last year.
For the third quarter (Q3) FY22, GWP and takaful contributions increased by 15.5 per cent to RM770.0 million from RM666.7 million recorded in the same quarter last year.
However, net investment income for the 9M FY22 came in lower compared to the same period last year, causing a decline in the company's net profit by 54.8 per cent to RM63.3 million.
MRNB president and group chief executive officer Zaharudin Daud said the company was impacted by the short-term volatility in its investment results but expected this to be temporary given the current strong recovery of the economy.
"In addition, the ongoing developments of Covid-19 pandemic, especially with the emergence of the new variant in December 2021, had continued to impose operational challenges to MNRB.
"Apart from this, the recent floods and recent significant losses also impacted our business.
"Amid these challenges, our operating subsidiaries remained robust and continued to focus on delivering credible top-line growth," he said in a statement today.
MNRB's reinsurance subsidiary, Malaysian Reinsurance Bhd (Malaysian Re), registered a growth of 23.5 per cent in its gross premiums and gross contributions to RM1.3 billion compared to RM1.0 billion recorded in the same period last year.
This was mainly driven by the healthy growth of its international and domestic business segments.
Combined with lower net investment income arising from market volatility, Malaysian Re's net profit declined by 74.3 per cent to RM19.7 million compared to RM76.8 million in 9M FY21.
Nevertheless, Malaysian Re remains resilient in the face of its challenges and will continue on its growth path while supporting the domestic insurance industry.
MNRB's general takaful arm, Takaful Ikhlas General Bhd's gross contribution rose by 10.5 per cent to RM352.0 million in 9M of FY22 from RM318.5 million in the same period last year, mainly contributed by the agency force for all main classes, motor, fire and personal accident.
The 9M recorded favourable business growth from its motor takaful segment, which accumulated higher contributions by 12.5 per cent to RM239.2 million from RM212.6 million recorded in the same period last year.
The higher gross contribution drove higher acquisition costs. As a result, together with lower net investment income, Takaful Ikhlas's net profit decreased to RM19.1 million from the RM22.2 million recorded in the same period last year.
"Providing excellent customer experience remains a priority for us. Understanding the importance of providing peace of mind and immediate assistance to all our customers, we have taken initiatives to expedite claims payments to all our certificate owners affected by the recent flood incident.
"In the wake of the recent flood catastrophe, Takaful Ikhlas General had also, in January this year, announced free towing service for eligible certificate owners affected by flood incidents," Zaharudin said.
Meanwhile, MNRB's family takaful business, Takaful Ikhlas Family Bhd (Takaful Family), registered an 8.9 per cent improvement in gross contributions to RM491.0 million from RM450.9 million recorded in 9M FY21.
This came on the back of higher contributions from its products, mainly credit-related products and regular individual products.
Takaful Family's net profit slightly declined to RM22.0 million from RM24.3 million recorded in the same period last year, mainly due to lower net investment income compared to the previous year.
"The re-opening of the economic sectors and the nation's growing consciousness on the importance of having takaful protection are among factors contributing to the growth of Takaful Family's gross contributions for the 9M period.
"In continuing its efforts to promote the importance of takaful to Malaysians, Takaful Family recently launched its latest product 'IKHLAS Perlindungan Tenang', which is in support of Perlindungan Tenang, a national initiative to provide affordable takaful and insurance plans for all Malaysians", Zaharudin said.