MNRB RECORDED 76.6% IMPROVEMENT IN NET PROFIT

28 Nov 2013

Kuala Lumpur, 28 November 2013 – MNRB Group registered an increase in its interim net profit by 76.6% or RM29.2 million for the six months period ended 30 September 2013.  The net profit improved to RM67.3 million from RM38.1 million recorded in the same period last year. The stronger performance was largely contributed by the improvement in the underwriting results of its reinsurance subsidiary, Malaysian Reinsurance Berhad (Malaysian Re).  During this period, the Group’s total assets grew by 8.5% to RM6.12 billion as compared to RM5.64 billion as at 31 March 2013.

Malaysian Re, the reinsurance subsidiary of the Group, continued to record strong performance with a reported RM706.6 million in revenue, an increase of 5.7% from RM668.6 million recorded in the corresponding period last year.  The revenue increase was well supported by its total assets, which rose by 12.7% to RM2.75 billion as at 30 September 2013 as compared to RM2.44 billion as at 30 September 2012.  This resulted in a Profit After Tax of RM88.5 million for the period under review as compared to RM39.4 million in the same period last year, mainly driven by improved claims experience.

Takaful IKHLAS Sdn Bhd (Takaful IKHLAS), the takaful arm of MNRB, also managed to improve its performance during the first six months of the current financial year. Its revenue increased by 4.6% from RM399.1 million to RM417.3 million due to the growth in gross contributions as well as higher investment income.  As a result, the net profit for the period ended 30 September 2013 increased by 55% to RM3.1 million, as compared to RM2.0 million recorded last year.

MNRB Retakaful Berhad (MRT), despite showing good improvement in its revenue, recorded a net loss of RM11.5 million as compared to a net profit of RM3.9 million recorded in the previous corresponding period. This was largely due to higher claims provision and actuarial reserves.

MNRB’s President & Group CEO, Mohd Din Merican said, “We are pleased with the first six months results which are a testament that the strategies and efforts we have put in place are now bearing fruits on a Group basis”.
 
MNRB Holdings Berhad is an investment holding company. Amongst its wholly owned subsidiaries are Malaysian Reinsurance Berhad (Malaysian Re), Takaful Ikhlas Sdn. Bhd. (Takaful IKHLAS), MNRB Retakaful Berhad (MRT) and Malaysian Re (Dubai) Ltd. (MRDL). MNRB is listed on the Main Market of the Bursa Malaysia Securities Berhad.
 
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