Malaysia: Takaful operations push MNRB's aftertax profit to historic high
Source: Middle East Insurance Review | Jun 2024
MNRB Holdings (MNRB) announced its best-ever financial performance in its 50-year history. For the financial year ended 31 March 2024 (FY2024), the group’s profit after tax (PAT) soared by 200% to surpass the MYR400m ($84.4m) mark.
In a statement, MNRB said that its PAT surged by 200.4% to MYR428.4m in FY2024 from MYR142.6m in FY2023. This was mainly due to the results of the reinsurance/retakaful business amounting to MYR362.4m, primarily fuelled by strong underwriting results coupled with robust investment performance. Overall, the group’s profitability was further strengthened by the takaful segment’s solid business fundamentals and operational efficiencies.
MNRB achieved gross written premiums and gross written contributions (GWP/GWC) of MYR4.0bn in FY2024, a 17.6% increase over FY2023’s GWP/GWC of MYR3.4bn. Revenue from the insurance and takaful businesses rose 21.1% to MYR3.6bn from MYR3.0bn in FY2023.
Despite challenges in the domestic and global capital markets from macroeconomic headwinds, MNRB’s investment income and yield reached a five-year record high, with investment results touching MYR588.3m, up 61.3% from FY2023. With a yield of 5.64%, MNRB’s investment performance was in line with the strong returns delivered by larger institutions in Malaysia. This purposefully designed growth, with more than an 80% concentration in the Malaysian market, was mainly attributable to favourable returns, following a strategic alignment of the investment portfolio, trading strategies and asset allocation model.
The group’s total financial assets grew by 12.8% to stand at MYR11.4bn in FY2024 compared to MYR10.1bn in FY2023, reflecting prudent capital management and robust investment growth. Meanwhile, the group achieved a return on equity (ROE) of 14.8%, indicating healthy performance across all business segments. M