MNRB : Annual Report 2022

C R E AT I N G A D V A N C I N G

V A L U E , G R O W T H

Vision

We Protect Everyone

Core Values

Inside This Report

Integrity

Collaboration

Expertise

Forefront of the Industry

Embracing innovation while improving value creation to remain being at the forefront of the industry.

Together Forward

Leveraging on the synergies amongst our reinsurance, takaful and retakaful businesses to drive robust performance, implement astute business strategies and foster strong partnerships.

Driving Value through Integration

We leverage on drawing strengths from the integration within our Group to maximise productivity and efficiency through the sharing of experiences, knowledge and continuously creating sustainable growth for the future.

CREATING VALUE, ADVANCING GROWTH

In such a volatile macro-economic landscape, we understand that the need to become an agile corporation is all the more imperative to create future value. Becoming an agile organisation starts with a mindset shift. Our organisation is composed of talented, driven individuals, committed to continuous improvement by constantly sourcing new ideas and innovations to optimise our products, services, and business processes. We are relentlessly pursuing customer satisfaction. Employees on the frontline are empowered to pioneer new programs to deliver excellent customer experience.

Success to us, will help the Group develop significant competitive advantages over our peers. From business to operations to human resources, agility confers to the Group, the creation of future value.

OUR BUSINESS

02 At a Glance

1. Corporate Profile & Presence
2. Corporate Information
3. Key Business Entities

1. Group Corporate Structure
2. Our Business Model

OUR PERFORMANCE & OUTLOOK

10 Chairman's Statement

1. Economic and Industry Review and Prospects

1. Management Discussion & Analysis

1. Code of Conduct & Business Ethics
2. Sustainability Statement

OUR FINANCIAL REVIEW

1. Five-YearFinancial Highlights
2. Five-YearGroup Performance
3. Simplified Group Statements of Financial Position

1. Group Operating Revenue
2. Group's Growth
3. Investors Information
4. Financial Calendar 2022

OUR GOVERNANCE

81 Directors' Profile

1. Group Shariah Committee Members' Profile

1. Key Senior Management Team
2. Key Senior Management Team's Profile

1. Corporate Governance Overview Statement

1. Audit Committee Report

114 Statement on Risk Management and

Internal Control

1. Statement of Directors' Responsibility in Relation to the Financial Statements
2. Additional Compliance Information

OTHER INFORMATION

1. Analysis of Shareholdings

1. List of Properties
2. Group's Offices

1. Notice of 49th Annual General Meeting

133 Statement Accompanying Notice of the 49th Annual General Meeting

OUR FINANCIAL REPORT

134 Financial Statements

PROXY FORM

At A Glance

GROUP PROFIT BEFORE TAX

RM127.5 million

-16.9% IN FY2022

GROUP PROFIT AFTER TAX

RM114.4 million

OUR GOVERNANCE OTHER INFORMATION OUR FINANCIAL REPORT

OUR BUSINESS

Corporate Profile & Presence

Malaysian National Reinsurance Berhad, the country's national reinsurer was set up in 1972 to reduce the outflow of reinsurance premiums overseas. The Company commenced operations on 19 February 1973.

MALAYSIA

DUBAI,UNITED ARAB EMIRATES

In 2005, as a result of a restructuring exercise within the MNRB Group, the Company's reinsurance licence, business and assets were transferred to its subsidiary company, Malaysian Reinsurance Berhad. Pursuant to the restructuring, Malaysian National Reinsurance Berhad became an investment holding company and changed its name to MNRB Holdings Berhad ("MNRB"). Today, MNRB is listed on the Main Market of Bursa Malaysia Securities Berhad.

The MNRB Group comprises a leading wholesale provider of reinsurance and retakaful as well as two takaful operators. Its reinsurance subsidiary stands tall among the top reinsurers in the region, writing lines of general businesses locally and abroad. In Malaysia, its takaful operators are amongst the pioneers in the provision of financial protection services based on the takaful system.

The Company has a Share Capital of RM738.5 million.

Corporate Information

Key Business Entities

Malaysian Reinsurance Berhad ("Malaysian Re") is a wholly owned subsidiary of MNRB Holdings Berhad. As the national reinsurer, Malaysian Re continues to enhance the competitiveness and efficiency of the local insurance companies in an increasingly globalised marketplace through its active involvement in leading and underwriting their reinsurance needs.

Malaysian Re underwrites all classes of general reinsurance business as well as general and family retakaful businesses through its retakaful division, Malaysian Re Retakaful Division.

Leveraging on its breadth and depth of experience and expertise, strong fundamentals and proven record of accomplishment, Malaysian Re has grown in stature as an international player having established a strong market presence in Asia and the Middle East.

Malaysian Re is the largest national reinsurer (by asset) in the Southeast Asia region.

PRESIDENT & GROUP CHIEF EXECUTIVE OFFICER Zaharudin Daud

COMPANY SECRETARY

Lena Abd Latif

(LS 0008766)

AUDIT COMMITTEE

Khalid Sufat (Chairman)

George Oommen

Junaidah Mohd Said

GROUP NOMINATION &

REMUNERATION COMMITTEE

Zaida Khalida Shaari (Chairman)

Junaidah Mohd Said

Khalid Sufat

RISK MANAGEMENT COMMITTEE

OF THE BOARD

George Oommen (Chairman)

Dato' Wan Roshdi Wan Musa

Datuk Johar Che Mat

Zaida Khalida Shaari

AUDITORS

Ernst & Young PLT

202006000003 (LLP0022760-LCA) &

AF0039

Chartered Accountants

Level 23A, Menara Millenium

Jalan Damanlela

Pusat Bandar Damansara

50490 Kuala Lumpur

SHARE REGISTRAR

Boardroom Share Registrars Sdn Bhd

11th Floor, Menara Symphony

No. 5 Jalan Prof. Khoo Kay Kim

Seksyen 13

46200 Petaling Jaya

Selangor Darul Ehsan

PRINCIPAL BANKER

Standard Chartered Bank

Malaysia Berhad

AmBank (M) Berhad

Malayan Banking Berhad

CIMB Bank Berhad

REGISTERED OFFICE

12th Floor, Bangunan Malaysian Re

No. 17, Lorong Dungun

Damansara Heights

50490 Kuala Lumpur

Website : www.mnrb.com.my

STOCK EXCHANGE LISTING

Bursa Malaysia Securities Berhad

Main Market

The Company has a Share Capital of RM663.1 million.

Takaful Ikhlas Sdn. Bhd. was incorporated on 18 September 2002 and is a wholly owned subsidiary of MNRB Holdings Berhad. The Company converted its status to Berhad on 5 May 2014.

On 30 November 2018, the Company announced the split of its composite takaful licence into two i.e. one for family takaful business and the other for general takaful business. The split is in accordance with the legislative requirement under the Islamic Financial Services Act, 2013 ("IFSA").

Pursuant to this, Takaful Ikhlas Berhad was renamed Takaful Ikhlas Family Berhad ("Takaful IKHLAS Family") and manages the family takaful business. The general takaful business is being managed by a new entity, Takaful Ikhlas General Berhad ("Takaful IKHLAS General").

Takaful IKHLAS Family offers a comprehensive range of family takaful products and currently records 275,000 certificate (inforce policy) holders as well as more than 5,000 agents.

The Company has a Share Capital of RM405.0 million.

Key Business Entities

Group Corporate Structure

Takaful Ikhlas General Berhad ("Takaful IKHLAS General") was incorporated on 5 June 2017 as a wholly owned subsidiary of MNRB Holdings Berhad, following the legislative requirement under the IFSA which requires Takaful Operators to separate its family and general takaful licences. The Company commenced operations on 28 November 2018 as the general takaful arm of MNRB.

Takaful IKHLAS General offers a comprehensive range of general takaful solutions which comprises motor and non-motor general takaful protection products. The Company is committed to deliver quality services through competent staff and effective distribution networks. Its distribution channels comprise knowledgeable and well-trained agents, brokers, financial institutions, motor franchise holders and cooperatives as well as the digital platform.

Takaful IKHLAS General currently records more than 935,000 registered certificate (policy) holders and more than 3,000 agents.

The Company has a Share Capital of RM230.0 million.

Malaysian Re (Dubai) Ltd. ("MRDL"), a wholly owned subsidiary of MNRB Holdings Berhad, was incorporated on 7 December 2006 in Dubai, the United Arab Emirates. Its office is situated within the strategic Dubai International Financial Centre ("DIFC") and regulated by the Dubai Financial Services Authority ("DFSA").

MRDL is engaged in developing business for its sister company, Malaysian Re in the Middle East. Its primary functions are to develop relationships with clients around this region as well as provide services and underwriting support to them. Its close proximity to this target market gives MRDL an edge when servicing its clients.

All businesses of MRDL are fully underwritten by Malaysian Re. MRDL will continue to expand its market presence and is committed to being at the forefront of the reinsurance and retakaful segments within the region.

MRDL has an Authorised Capital of USD5.0 million and a Paid-up Capital of USD2.0 million.

Malaysian Reinsurance Berhad 100.0%

Takaful Ikhlas Family Berhad

100.0%

Takaful Ikhlas General Berhad 100.0%

Malaysian Re (Dubai) Ltd.

100.0%

MMIP Services Sdn. Bhd.

100.0%

Sinar Seroja Berhad

100.0%

Motordata Research Consortium

Sdn. Bhd.*

40.0%

Labuan Reinsurance (L) Ltd.*

20.0%