KUALA LUMPUR (Nov 30): MNRB Holdings Bhd’s net profit for the first six months ended Sept 30, 2020, increased by 7.9% to RM93.2 million from RM86.4 million recorded in the same period a year ago.

In a filing with Bursa Malaysia today, the company said its gross premiums and takaful contributions rose 6.5% to RM1.14 billion in the first half of the financial year 2021 (1HFY21) from RM1.07 billion in 1HFY20.

The group's reinsurance subsidiary, Malaysian Reinsurance Bhd (Malaysian Re), posted a 5.8% drop in net profit to RM46.9 million in the period from RM49.8 million previously, on the back of lower net investment income due to the challenging investment climate affected by the Covid-19 pandemic.

“However, the lower investment income was offset by the company’s improved underwriting result of RM11.6 million, compared to a deficit in the same period last year,” it said.

Malaysian Re registered a 5.9% increase in gross premium to RM671.5 million from RM634.2 million recorded in the same period last year, mainly contributed by overseas business. 

Meanwhile, the group’s family takaful subsidiary, Takaful Ikhlas Family Bhd, recorded a lower net profit of RM13.6 million in 1HFY21 compared with RM34.6 million a year ago, while gross contribution fell to RM264.0 million from RM287.8 million previously.

MNRB’s general takaful arm, Takaful Ikhlas General Bhd, registered a 41.7% increase in its gross contribution to RM204.2 million for 1HFY21 from RM144.1 million recorded in the same period a year ago, driven by all segments, namely agency, bancatakaful and corporate. 

Takaful IKHLAS General also recorded a surge in net profit to RM15.7 million from RM8.7 million recorded in 1HFY20 driven by higher wakalah fee income in line with the higher gross contribution.

Commenting on the results, MNRB president and group chief executive officer Zaharudin Daud said the group also saw its net investment income affected by the volatile market. 

“The Covid-19 outbreak had indeed impacted the global financial market as a whole. The repercussions of this situation, which include weakening market and overall low interest environment, had put a strain on our investment portfolios. 

“Hence, on the investment side, MNRB’s net investment income reduced 16.5% to RM265.0 million in 1HFY21 from RM317.2 million previously,” he said.

Moving forward, Zaharudin said the group will continue to work conscientiously despite the ongoing global pandemic and uncertain environment, and continue to emphasise on the group's growth and sustainability through excellent customer service, products diversification, enhancement of distribution channels, and accelerating its digital and technological platforms.