MNRB Berhad : Records 15.4% Topline Growth in FY2022

News Release

May 30, 2022

MNRB Records 15.4% Topline Growth in FY2022

Kuala Lumpur, 30 May 2022 - MNRB Holdings Berhad (MNRB) today announced its earnings for the Financial Year Ended 31 March 2022 (FY2022). MNRB Group remained steadfast in FY2022 and recorded a 15.4% growth in its Gross Written Premiums and Takaful Contributions to RM3.0 billion as compared to RM2.6 billion recorded in the previous financial year. Net investment income for FY2022 came in lower as compared to last year causing a decrease in the Group's Net Profit by 39.6% to RM114.4 million.

"FY2022 had imposed several challenges to our operating environment. The domestic market was not spared from the direct and indirect impact of the global pandemic. During the first half of the financial year, various stages of the Movement Control Order (MCO) were reinstated to combat the resurgence of COVID-19 cases and its variants. As we progressed into the year with the implementation of the National Recovery Plan, the nation was then hit by the devastating flood incident in December 2021 and being a responsible reinsurance and takaful organization we are, the entities swung into action to respond to the calamity. The Group had shown great resilience nonetheless, in weathering the challenges and performed admirably in FY2022", said Zaharudin Daud, President & Group Chief Executive Officer of MNRB.

Malaysian Re continues to strengthen overseas business

On the performance of the Group's reinsurance subsidiary, Malaysian Reinsurance Berhad (Malaysian Re) recorded a 21.4% growth in its Gross Premiums and Gross Contributions to RM1.7 billion as compared to RM1.4 billion recorded in FY2021. This was mainly driven by solid growth of its overseas business segment and local treaty business.

FY2022 saw Malaysian Re impacted by several major losses including the major domestic flood event in December 2021, which had contributed to the lower underwriting performance for the Company. Aside from underwriting performance, the Company's results were also affected by the lower net investment income arising from a challenging investment environment, which led to a decline in Net Profit of 52.8% to RM62.8 million from RM133.1 million last year.

"The December 2021 flood incident as we know had severely impacted livelihoods of many Malaysians across the nation. As the national reinsurer, Malaysian Re rallied to support the industry in responding to this incident through efficient and swift claim management to ensure affected policyholders' needs were attended to promptly".

"As we move forward, Malaysian Re will continue to further expand and diversify its overseas portfolio in high potential market and increase participation in new segments such as Managing General Agent (MGA), Agriculture and Cyber. Additionally, we will emphasise on building capabilities to take on more complex risks to enable us to offer comprehensive risk solutions to our customers", added Zaharudin.

Takaful IKHLAS Family sustains growth

Takaful Ikhlas Family Berhad (Takaful IKHLAS Family), the Group's family takaful business, saw a 3.8% improvement in its Gross Contributions to RM713.8 million from RM687.5 million registered in FY2021. This was mainly attributed by its credit-related business as well as regular individual products namely IKHLAS Bersama and IKHLAS Dariku.

FY2022 also saw Takaful IKHLAS Family recorded significant growth of 57.9% in Net Profit to RM30.8 million from RM19.5 million recorded last year.

"Perseverance will continue to be the key in driving our family takaful business moving forward. We will continue to develop and offer innovative products and solutions to our customers while at the same time strengthen our Bancatakaful relationship and expand our agency force and capabilities to serve our customers and further expand our outreach nationwide. We are also leveraging on digital capabilities to expedite our benefit payment processes to help improve our customers experience and other capabilities that will be introduced in the coming year", added Zaharudin.

Takaful IKHLAS General records significant improvements

Meanwhile MNRB Group's general takaful subsidiary, Takaful Ikhlas General Berhad (Takaful IKHLAS General) registered a 10.1% growth in its Gross Contribution to RM516.1 million in FY2022 from RM468.8 million recorded in FY2021. This came on the back of the significant increase in all its classes of businesses, especially Motor and P.A. classes.

The increase in its Gross Contribution contributed to higher wakalah fee and as a result, Takaful IKHLAS General's Net Profit rose 20.1% in FY2022 to RM32.9 million from the RM27.4 million in FY2021.

"Our general takaful business had shown creditable improvements in FY2022. This was driven by strategic partnerships and campaigns throughout the financial year, as well as implementation of various digitalisation efforts including establishment of virtual branches and launches of automated claims processes which significantly expedite the settlement of Motor and Fire claims. Moving forward, we will continue to explore opportunities for innovative online channel distribution through our digital platforms as well as expand our fintech partnerships to enhance the experience of our agents, partners, and customers as well to further promote our presence and outreach to help facilitate more Malaysians to participate in helping each other in protecting their lives, livelihoods, wealth and assets." added Zaharudin.

Future plans for MNRB Group

The MNRB Group remains robust its efforts in building resilience in our businesses in this new financial year. Digitalisation remains as its priority as the Group continue to adapt technological innovation to enhance operational efficiency, strengthen business analytics and boost the reliability of its products and services to enrich customer experience.

Commenting on the Group's plans for the new financial year, Zaharudin said, "MNRB Group will continue its efforts in building resilience in our businesses in this new financial year by increasing our leverage on digitalisation namely our new GO by Takaful IKHLAS ecosystem. We are also expanding our customer centricity with measured initiatives to ensure continuous service excellence.In addition, we will also continue our journey towards achieving a growth that is sustainable and meaningful for all our stakeholders. In the effort to create a positive socio-economic impact, we will enhance our support to carbon-neutral and renewable energy development and bolster our effort towards inclusive and sustainable takaful penetration and increase our market share to be more dominant in the market. Our aim is to deliver sustainable growth whilst ensuring long-term value creation for all our stakeholders," said Zaharudin.