MNRB sees near double net profit for FY18

KUALA LUMPUR: MNRB Holdings Bhd ( MNRB) ended its financial year on 31 March 2018 (FY18) with a group profit before tax of RM189 million as compared to RM99 million in the previous financial year.

According to its press statement, MNRB’s net profit improved by 93 per cent to RM137 million from RM71 million recorded last year.

It said, the improved results came on the back of sound performances from its subsidiaries; national reinsurer, Malaysian Reinsurance Bhd ( Malaysian Re), and Takaful arm, Takaful Ikhlas Bhd (Takaful IKHLAS).

“Our commendable results last year reflected the group’s perseverance and strong dedication whilst operating under an uncertain economic landscape. We were focused on executing our strategic business approaches, which yielded to our strong performance in FY18,” said MNRB president and group chief executive officer Mohd Din Merican.

Meanwhile, the group’s total assets increased 4.8 per cent to RM7.9 billion in FY18 from RM7.6 billion in FY17. The group also recorded higher net investment income at RM248 million as compared with RM229 million in the previous year. More than 40 per cent of the group’s investments were in low risk assets, including Malaysian Government Securities and Government Investment Issues.

As for the performance of Malaysian Reinsurance Bhd ( Malaysian Re), MNRB noted that it had, on April 1, 2017, launched its strategic business transformation programme, known as the Business Transformation 2020 (T20).

It noted that the results from Malaysian Re’s T20 was manifested in the company’s improved claims and combined ratios observed in FY18, which ultimately translated into improved underwriting surplus and net profits.

“Under T20, Malaysian Re had rationalised its overseas portfolio by terminating non-profitable businesses and increasing its participation in high-growth and profitable segments. In addition, Malaysian Re had further refined its risk selection process and strengthened its internal control for the businesses it underwrites,” added Mohd Din.