KUALA LUMPUR (Aug 21): MNRB Holdings Bhd’s (KL:MNRB) net profit rose 9.1% year-on-year to RM183.75 million for the first quarter ended June 30, 2026 (1QFY2027), its highest quarterly profit since 4QFY2024.
Total revenue increased 2.8% to RM1 billion from RM975.56 million, mainly driven by stronger performances from its general takaful, family takaful and retakaful businesses.
In a Bursa Malaysia filing on Friday, MNRB attributed the improvement in earnings to stronger contributions from its reinsurance, family takaful and retakaful businesses.
This was supported by higher insurance and takaful revenue, lower net insurance and takaful financial results, and a higher share of results from associates.
Its reinsurance business recorded a 21% increase in profit before zakat and taxation to RM153.6 million despite a 14.5% decline in total revenue to RM459.9 million.
The stronger profit was driven by stable insurance service results and improved investment performance, including higher unrealised foreign exchange gains.
Meanwhile, general takaful revenue grew 13% to RM316.2 million, driven by its motor and fire portfolios, while family takaful revenue jumped 24.3% to RM167.4 million on higher contributions from its group credit term takaful and group hospitalisation scheme portfolios.
No dividend was announced with the latest quarterly earnings.
Looking ahead, MNRB said the reinsurance market is expected to remain soft but stable through 2026 and into the 2027 renewal season, as capacity returns and competition intensifies.
However, it sees opportunities for profitable growth in Asia Pacific, driven by economic expansion, infrastructure development, rising insurance awareness and significant protection gaps.
"Overall, the group remains confident in the long-term growth prospects of its (re)insurance and (re)takaful businesses, supported by its diversified business portfolio, disciplined underwriting practices and focus on sustainable profitability," it said.
Shares in MNRB closed five sen, or 1.7%, higher at RM2.95 on Friday, valuing the group at RM2.31 billion.