MNRB : ANNOUNCES STRONG PERFORMANCE FOR H1 FY2024

Kuala Lumpur, 20 November 2023 - MNRB Holdings Berhad (MNRB) delivered a solid financial performance for its first six-months period ended 30 September 2023 (H1 FY2024). The financial results for the period under review reflects steady growth in the Group's reinsurance and takaful businesses underlining the Group's commitment in delivering profitable growth.

H1 FY2024 Results

MNRB's Group Net Profit improved substantially to RM111.1 million in H1 FY2024 as compared to a Net Loss of -RM9.7 million recorded in the same period last year. This was attributable to the improvement in the Group's Insurance and Takaful Service Results led by improved underwriting performance resulted from better claims experience as compared to the corresponding period, coupled with higher movement of fair value gains in investments. Its Insurance and Takaful Revenue grew 14.2% to RM1.6 billion from RM1.4 billion recorded in the same period last year.

The Group recorded an 18.0% growth in Operating Revenue to RM1.8 billion in H1 FY2024 from RM1.5 billion in the same period last year, mainly contributed by its Insurance and Takaful Revenue which came on the back of strong growth in the general takaful and reinsurance businesses. The growth in operating revenue was also a result of the improvement in Group Net Investment Income by RM58.9 million.

Second Quarter FY2024 Results

For the second quarter ended 30 September 2023 (Q2 FY2024), MNRB's Group Net Profit increased to RM41.6 million from RM13.5 million recorded in Q2 FY2023. The Group recorded an increase of 18.1% in Insurance and Takaful Revenue to RM827.6 million from RM700.5 million recorded in the same quarter last year.

Comments from MNRB Group President & CEO

Commenting on the Group's performance, Zaharudin Daud, President & Group Chief Executive Officer of MNRB said, "Our operating subsidiaries continued its momentum in delivering credible performance following the strong start to the new financial year previously.

We remained focus on expanding our market reach through various strategic initiatives within the Group which include growing our reinsurance business' overseas Specialty Treaty and MGA portfolios, strengthening our takaful businesses' agency force and strategic partnerships as well as enhancing our digital capabilities to ensure superior customer experience to all our customers and partners".

Reinsurance and Retakaful Business

On the performance of its reinsurance arm, Malaysian Reinsurance Berhad (Malaysian Re), the Company recorded a Net Profit of RM89.7 million in H1 FY2024 against RM17.8 million recorded in the same period last year. This came on the back of higher Insurance Service Result and net investment income. Its Reinsurance and Retakaful Revenue increased 15.6% to RM1.0 billion from RM 865.2 million recorded in H1 FY2023 mainly driven by its overseas Specialty and Treaty business segments.

Takaful Businesses

Reviewing the performance of the Group's takaful businesses, Takaful Ikhlas Family Berhad (Takaful IKHLAS Family)'s Net Profit increased to RM8.0 million in H1 FY2024 as compared to a loss of -RM2.4 million in the same period last year which came on the back of higher investment income. Its Takaful Revenue declined 8.5% to RM240.6 million from RM263.0 million recorded in H1 FY2023, impacted by lower written contribution from its bancatakaful channel.

Takaful Ikhlas General Berhad (Takaful IKHLAS General), the Group's general takaful arm, recorded a significant growth in its Net Profit to RM26.5 million from RM11.0 million recorded in the same period last year mainly driven by higher Takaful Revenue. Its Takaful Revenue surged 36.0% to RM356.1 million from RM261.8 million recorded in H1 FY2023 driven by the agency channel of its business.

Outlook

Commenting on the Group's strategy moving forward, Zaharudin said, "We remain focused on our expansion and diversification initiatives for the reinsurance/retakaful and takaful businesses. We are also committed to strengthening our relationships with our clients and partners through an exceptional customer experience. Our efforts are bearing fruit, despite the challenging external environment".