MNRB'S FY2024 NET PROFIT SOARS TO RM428.34 MLN, BEST-EVER PERFORMANCE IN 50-YEAR HISTORY

KUALA LUMPUR, May 8 (Bernama) -- MNRB Holdings Bhd recorded a jump in net profit to RM428.34 million for the financial year ended March 31, 2024 (FY2024) from RM142.64 million in FY2023, marking the best-ever financial performance in the company’s 50-year history.

This was mainly driven by strong business expansion, underwriting results and investment returns. 

Revenue increased to RM3.60 billion from RM2.97 billion in the previous year, it said in a filing with Bursa Malaysia today. 

bootstrap slideshow

In a separate statement, the group said it achieved gross written premiums and gross written contributions (GWP/GWC) of RM4.0 billion in FY2024, a 17.6 per cent increase over FY2023’s GWP/GWC of RM3.4 billion.

Revenue from the insurance and takaful businesses rose 21.1 per cent to RM3.6 billion from RM3.0 billion in FY2023.

It also noted that its profit after tax (PAT) for FY2024 surged by 200.4 per cent to RM428.4 million, surpassing the RM400 million mark.

“This was mainly due to the results of the reinsurance/retakaful business amounting to RM362.4 million, 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,” said MNRB.

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 RM588.3 million, up 61.3 per cent from FY2023.

With a yield of 5.64 per cent, 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 per cent 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,” it noted.

Additionally, the group’s reinsurance/retakaful subsidiary, Malaysian Reinsurance Bhd (Malaysian Re) achieved a record-breaking RM2.5 billion in GWP/GWC in FY2024, surpassing the RM2.0 billion mark for the first time. 

As of March 31, 2024, Malaysian Re had secured the top place among Asean’s reinsurers for its GWP.

For the fourth quarter ended March 31, 2024 (4Q FY2024), MNRB’s net profit rose to RM232.63 million against RM94.94 million a year ago, while revenue rose to RM816.79 million versus RM637.97 million in 4Q FY2023.

The group’s insurance and takaful revenue increased 30.6 per cent to RM707.2 million in the period from RM541.3 million recorded in 4Q FY2023. 

MNRB president and group chief executive officer Zaharudin Daud said the sukuk issuance has also helped to bring down the cost of capital and provided the company with the flexibility to execute the group’s transformation effectively.

It also enabled strategic diversification into international markets and facilitated strategic partnerships, he added.

Meanwhile, MNRB chairman Datuk Johar Che Mat said the key to the company’s success was the rollout of strategic initiatives across all business lines.

The significant improvements in FY2024 were strategically planned with an ongoing commitment to prioritising stakeholders’ interests and championing good governance.

“We noted that investors’ interest in the group has increased, reflecting the market’s confidence in the company throughout the financial year.

“We continue to look beyond Malaysian shores and are leveraging current opportunities in the hard market while preparing to surmount challenges in the upcoming soft market,” he said. 

-- BERNAMA