Robust 4Q seasonal demand reaffirmed for Tune Ins
KUALA LUMPUR: Analysts continue to envision unimpeded growth in Tune Ins Holdings Bhd’s (Tune Ins) travel insurance, and reaffirm a strong fourth quarter (4Q) travel season, supported by 4Q data released by the airline partners.
RHB Research Institute Sdn Bhd (RHB Research) noted that data released by its airline partners reaffirm the management’s expectations of a seasonally strong 4Q season.
The other airline partners aside from AirAsia also recorded impressive FY14 growth, with Cebu Pacific experiencing an 18 per cent growth year on year for domestic international passengers, while Air Arabia carried 6.8 million passengers representing an 11 per cent growth year on year.
“The total passengers made up 102 per cent of our 50 million passengers assumption – which should directly benefit the company’s earned premium growth – despite a weak regional travel demand in 2014. We expect both ex- isting partners’ growth and potential new partnerships to support 60 million FY15F passenger assumption,” said RHB Research.
Tune Ins is expected to report results by end-February.
“We expect 4Q to be robust due to the aforementioned seasonality, full contributions from the Middle East joint venture (JV) and its Thailand associate. This should offset a low take-up rate in 3Q14, which was hampered by a rationalisation in airline capacity and one-off issues with online booking engine.
“Our outlook remains bullish as we think a recoveryinregionaltraveldemand is unfolding. Thailand is already
The total passengers made up 102 per cent of our 50 million passengers assumption – which should directly benefit the company’s earned premium growth – despite a weak regional travel demand in 2014. We expect both existing partners’ growth and potential new partnerships to support 60 million FY15F passenger assumption.
RHB Research
experiencing an 18 per cent on year growth in international arrivals in Feb 2015, owing to an improved political climate and the Spring festival season.”