Sunday 19 May 2024
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KUALA LUMPUR (Feb 19): Tune Protect Group Bhd said that certain policies underwritten by its subsidiary, Tune Insurance Malaysia Bhd (TIMB), as part of the Perlindungan Tenang Voucher (PTV) initiative in 2022 have been deemed unacceptable by the industry regulator, potentially affecting its upcoming quarterly results.

In a Bursa Malaysia filing, Tune Protect disclosed that TIMB received notification from the regulator regarding the non-redemption of PTVs due to some customer consents secured by TIMB being assessed as unacceptable.

Consequently, the group acknowledged that this could have an adverse impact of RM30.8 million on its earnings, which will be reflected in its results for the fourth quarter ended Dec 31, 2023 (4QFY2023). Despite this setback, the group said it is currently considering an appeal.

The group is expected to announce its upcoming results on Feb 29.

Insurers are governed by the Financial Services Act, and are regulated by Bank Negara Malaysia.

The PTV programme was implemented during the Covid-19 pandemic in 2021 and 2022 to provide insurance and takaful protection to the low-income group.

On June 14 last year, then deputy finance minister Datuk Seri Ahmad Maslan announced the discontinuation of the PTV programme due to its low redemption rate, with only 0.01% of the 4.9 million participants redeeming their vouchers under the RM354 million initiative.

For the nine-month period ended Sept 30, 2023 (9MFY2023), the group posted a net profit of RM15.25 million, compared to a net loss of RM36.36 million in the same period the prior year, while revenue declined slightly to RM331.07 million from RM350.44 million for the corresponding period.

In 3QFY2023, Tune Protect recorded a profit of RM3.76 million, compared to a net loss of RM10.16 million a year ago, driven by improvements in both investment service results and investment income.

Quarterly revenue dropped to RM106.94 million from RM126.3 million, primarily due to a decrease of RM29.5 million in the group’s general insurance segment contribution.

Tune Protect is controlled by Capital A Bhd executive chairman Datuk Kamarudin Meranun and Capital A chief executive officer Tan Sri Tony Fernandes through their 29.42% indirect stake in the company, via AirAsia Digital Sdn Bhd (13.65%) and Tune Group (15.77%).

Kamarudin holds an additional 0.022% direct stake, and Fernandes holds an additional 0.01% direct stake in the group.

Tune Protect shares closed 1.5 sen or 3.75% higher at 41.5 sen, giving the group a market capitalisation of RM312.68 million.

Edited ByAdam Aziz
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