KUALA LUMPUR (Aug 16): MNRB Holdings Bhd’s (KL:MNRB) net profit for its first financial quarter ended June 30, 2024 (1QFY2025) surged 32.6% to RM92.2 million from RM69.54 million a year ago, driven by better reinsurance and general takaful businesses.
Earnings per share jumped to 11.77 sen for 1QFY2025 versus 8.88 sen for 1QFY2024.
Revenue for the quarter inched down 0.5% to RM941.05 million from RM945.35 million a year ago, mainly dragged down by its family takaful business.
No dividend was declared for 1QFY2025.
In terms of segment breakdown, MNRB’s reinsurance business saw its revenue grow 2.4% year-on-year (y-o-y) to RM477.5 million in 1QFY2025, contributed by growth in insurance revenue as well as investment income. Profit for the segment jumped 42.9% y-o-y to RM92.3 million, driven by improved claims experience.
Its general takaful business, meanwhile, saw its 1QFY2025 revenue grew 12.6% y-o-y to RM198.6 million on higher takaful revenue earned from motor and fire businesses which helped boosted its profit by 54.2% y-o-y to RM16.5 million.
The group’s family takaful business fell 11.6% y-o-y to RM208 million in 1QFY2025 due to reduction in bancatakaful business. Profit for the segment fell 23% y-o-y to RM5.7 million.
On prospects, MNRB said despite its continued dominance in the domestic reinsurance and retakaful scene, it will take a proactive stance to risk diversification and pursue profitable growth in the overseas markets and specialised business lines.
“With the increasing frequency and/or severity of climate-related disasters, the group maintains a disciplined underwriting approach, emphasising the efficient use of capital and implementing appropriate retrocession protection programmes,” it said in a filing with Bursa Malaysia on Friday.
In terms of its investment strategy, the group said it sees key domestic themes such as the Johor-Singapore Special Economic Zone, investments in green energy and technology under the National Energy Transition Plan and the National Industrial Masterplan 2030, as well as the rollout of infrastructure projects.
MNRB shares closed up 22 sen or 10.4% at RM2.34 on Friday — the fifth-largest gainer across Bursa. Year-to-date, the stock has risen 91.8%. The group’s market capitalisation stood at RM1.83 billion.