Tune Protect's 1Q earnings grow 38% as revenue strengthens

by **Cals** Sun 29 May 2016, 23:57

By Sangeetha Amarthalingam / theedgemarkets.com | May 27, 2016 : 9:08 PM MYT
KUALA LUMPUR (May 27): Stronger contributions from both its general reinsurance and general insurance segments pushed Tune Protect Group Bhd's net profit for its first quarter ended March 31, 2016 (1QFY16) up 37.8% to RM22.6 million from RM16.5 million a year ago.

The general reinsurance segment saw a profit before tax (PBT) growth of RM1.4 million, while the general insurance segment's PBT grew RM7.7 million, its bourse filing today showed.

Meanwhile, the group's quarterly revenue was up 16.4% to RM129.5 million from RM111.2 million last year, due to a RM17.6 million rise in gross earned premiums (GEP), besides a RM700,000 investment income from its investment collective schemes.

It proposed a final single tier dividend of five sen for the financial year ended Dec 31, 2015, which will be paid on July 1, subject to shareholders' approval on June 3.

In a statement, Tune Protect said its performance demonstrated its stability while operating in a volatile economic environment, with double-digit growth across the board.

"Net earned premiums (NEP) grew 25.2% to RM82.6 million, boosted by the increase of RM12.3 million from our general insurance business across the motor, medical and fire classes, and an increase of RM4.3 million from global travel business. Profit after tax soared by 41.2% in 1QFY16," said the group's chief executive Junior Cho.

"We are encouraged by the solid start to the year and we are confident in maintaining our healthy growth track through 2016," he added.

The group, formerly known as Tune Ins Holdings Bhd, is, through its subsidiaries, an underwriter, directly and via reinsurance, of general and life insurance products across the Asia-Pacific region.

Besides general insurance, it also operates an online insurance business via Tune Direct (M) Sdn Bhd and sells insurance products to customers through online partners

Tune Protect shares closed 11 sen or 7.86% higher at RM1.51 today, valuing the group at RM1.13 billion.