KUALA LUMPUR (May 28): Tune Protect Group Bhd slipped into the red with a net loss of RM15.45 million in the first quarter ended March 31, 2021 (1QFY21), from a net profit of RM2.5 million in the corresponding quarter last year.

In a bourse filing, the group said its bottom line was impacted by fair value losses on investments during the quarter.

The group saw net investment losses of RM25.7 million in 1QFY21. The fair value losses were due to surging global bond yields driven by the sell-off of US government bonds in anticipation of economic recovery, as well as inflationary expectations.

Quarterly revenue declined 4% to RM117.45 million, from RM122.36 million in 1QFY20.

On a quarter-on-quarter basis, the group also fell into the red from a net profit of RM1.02 million in 4QFY20, while revenue fell from RM117.23 million.

The group did not declare any dividend during the quarter.

Tune Protect CEO Rohit Nambiar said it maintains a weighted fixed income portfolio credit rating of at least AA.

“With the current expectation of our fixed income unit trust investment’s fair value recovering in the coming quarters, we are confident it will remain a viable investment in the long run,” he said

“We are still on the right path to recovery, despite tough market conditions. This is evident by the group’s 1QFY21 GWP (gross written premiums) which posted its second consecutive quarter-on-quarter growth, as well as NEP (net earned premiums) which grew for the third consecutive quarter. The group also registered an underwriting profit of RM800,000 with lower claims experienced.

"We have also been able to diversify our business to reduce reliance on AirAsia for travel premiums,” he said.

Rohit said the group’s growth was encouraged by its travel business recovery and performance of its Covid-19 products in the Middle East.

"Tune Protect Re achieved strong revenue growth for the quarter, exceeding that of 1QFY20 by 84.0%,” he added.

Shares of Tune Protect closed 1.24% or half a sen higher at 41 sen today, valuing the group at RM308.22 million. The counter saw 686,200 shares traded.