Tune Protect posts lower net profit in first quarter
KUALA LUMPUR: Tune Protect Group Bhd has posted a lower net profit of Rm2.5mil for the first quarter ended March 31, 2020 (Q1 2020) compared with RM18.34 mil in the same period last year.
Revenue decreased to Rm122.36mil in Q1 from RM126.66 mil in Q1 2019.
In a filing with Bursa Malaysia, the group said the lower profit was a factor of the decrease in travel business, lower underwriting profit, and unrealised investment loss due to weaker performance in the fixed income market.
The drop in gross written premiums, it added, was partly due to a decline in its travel business recorded by Tune Protect Re, the group’s reinsurance arm, aligned to the reduction in air travel demand, and a decrease in the motor line of business recorded by Tune Protect Malaysia, the group’s Malaysian general insurance subsidiary.
Tune Protect group chief executive officer Khoo Ai Lin said the Covid-19 outbreak has affected many businesses and industries globally, and Tune Protect was not spared.
“However, the group remains resilient with a healthy capital position and adequate liquidity to weather the uncertainties that lie ahead,” she said.
Additionally, Khoo said the group had put together a comprehensive recovery plan to address the impact caused by the pandemic.
The plan focuses on three sections, namely
“The group remains resilient with a healthy capital position and adequate liquidity.” Khoo Ai Lin
immediate interventions on current business; re-prioritise line-of-business, channel and partner diversification; and expand offerings and solutions focusing on the new normal.
“The Covid-19 situation has reshaped human behaviour with consumers’ preference leaning on a more digital-led recovery.
“The new normal for the insurance sector will be technology and protection coming together as a complete solution to customers. Despite a negative shorter-term outlook, I believe that in the longer term, given our aspiration of becoming the leading digital insurer, Tune Protect is poised to navigate our way through successfully in a digital environment, ” she added.