Tuesday, June 7, 2011

Low Reinsurance Claims Push Up Malaysia's MNRB 2010 Net Profit

MNRB Holdings Bhd. said its net profit rose by 157.4% to 124 million ringgits (US$41 million) for the financial year ended March 31, 2011, from 48.2 million ringgits in the previous year; mainly due to lower claims incurred by its reinsurance subsidiary and capital gained from investments.
The company's profit before zakat (Islamic alms) and taxation rose by 119% to 165.1 million ringgits, from 75.4 million ringgits last year. Its revenue during the year was more than 1.46 billion ringgits, up 8.8% from 1.35 billon ringgits, according to MNRB.
The increase in gross premium written by the reinsurance subsidiary and its takaful and retakaful operator earning more wakalah fees (Islamic agency management fees) have improved the company's revenue, MNRB's chief operating officer Datuk Ramlan Abdul Rashid said in an analysts briefing.
"Given the encouraging performance of our economy, we expect that the group would achieve better results in the coming financial year," noted the COO.
Last December, MNRB said it received approval from Bank Negara Malaysia, the country's central bank and financial regulator, to commence discussions with Allianz Malaysia Bhd. on the proposed selling of a portion of its equity interests in Takaful Ikhlas Sdn. Bhd., a wholly owned subsidiary of the company (BestWire, Dec 23, 2010).
Takaful Ikhlas provides family and general takaful for individuals and groups, with 10 branches in Malaysia. Its distribution channels include more than 6,000 agency personnel, brokers, financial institutions, motor franchise-holders, cooperatives and Islamic bodies.
MNRB Holdings Bhd., formerly known as Malaysian National Reinsurance Bhd., has a wholly owned general reinsurer Malaysian Re, MNRB Retakaful Bhd. and Malaysian Re (Dubai) Ltd. Labuan Re, an offshore reinsurer incorporated in the Labuan International Offshore Financial Center, is an associate company of Malaysian Re.
MNRB also has a subsidiary MMIP Services Sdn Bhd, the manager of the Malaysian Motor Insurance Pool, which was established by the local insurance industry to offer insurance coverage for vehicle owners that have difficulty in obtaining motor insurance coverage.
Kuala Lumpur-based MNRB is listed on the Bursa Malaysia Securities Bhd. Its major shareholder is Amanah Raya Nominees (Tempatan) Sdn. Bhd.

(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com) Bookmark and Share
June 05, 2011

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