MNRB sees increase in FY17 net profit

KUCHING: MNRB Holdings Bhd posted a sharp increase in net profit for the financial year ended March 31, 2017 (FY17).

The group saw its unaudited net profit rebounding to RM70.2 million from a net loss of RM38.8 million in the previous financial year, led mainly by favourable results from reinsurance operations while relatively stable financial market condition contributed to gains in investment income.

Last year, the group initiated strategic business plan to reposition its reinsurance portfolio which are beginning to show positive results.

As a result, its reinsurance subsidiary, Malaysian Reinsurance Bhd (Malaysian Re) recorded a net profit of RM82.4 million over the same period as compared to RM2.5 million last year.

MNRB president and group CEOMondDinMericansaid:”The alteration of business strategy via becoming more selective and targeting our business from risk-adjusted perspective is much needed in adapting to the present market landscape. We shall continue to undertake these measures to sustain our profitablity in this challenging business environment.”

Encouraging development was also observed in its takaful business with net loss narrowing significantly to RM9.1 million as compared to RM34.8 million in the previous year.

Its takaful subsidiary, Takaful Ikhlas Bhd saw its year on year combined family and genral business growth of 10.8 per cent as compared to the overall takaful industry growth of 7.1 per cent in 2016, reflecting its strong presence in the market.

The group is confident that improvement in results would persist in FY 2018 given the new business strategies that are already in place.

In his cautiously optimistic outlook Merican said:” GDP growth in the first quarter of this year was better than expected and this is sonewhat positive for the business outlook. Nonetheless business expansion going forward will continue to be guided by selective underwriting, effective claims management and cost containment to optimise our earnings.”