Tune Protect Group started its new financial year encouragingly in 1Q25 with 100% y-o-y growth of profit after tax (PAT) on the back of notable net insurance service result. Tune Protect Group CEO How Kim Lian, highlighted several factors that drove the insurer's strong financial performance in 1Q25.
Tune Protect registered more than 100% growth in net insurance service result, or MYR5.8m ($1.36m) in 1Q25 with a 16.4% reduction in combined ratio mainly driven by lower net incurred claims, primarily due to more favourable claims experience for motor and fire.
“Overall the group showed financial resilience in the quarter with positive trends with more than 100% growth in PAT YoY attributable to the growth in net insurance service result and the improvement in total other income and expenses.” Said Mr How. The Group recorded a PAT of MYR7.4m in 1Q25, compared to a loss after tax of MYR3.9m y-o-y.
The slight decline in insurance revenue by 6.5% to MYR88.5m for 1Q2025 was partially mitigated by the weightage increase in the insurer’s travel portfolio. Despite the higher acquisition cost, this is compensated with the improvement in claims and attributable expenses.
“Combined ratio was another key financial highlight. It continued to improve driven by lower net incurred claims and attributable expenses. The improved combined ratio of 93.4% was due to more favourable claims experience for the motor and fire segments. On the other hand, the negative share of results recorded by our associate company in Thailand was due to claims on impact of the earthquake in Myanmar, causing aftershocks in Thailand in 1Q25,” he said.
Riding on the wave of the commendable financial performance, the Group’s bottom line strengthened evidenced by the positive trend of profit before tax (PBT). This was led by favourable claims experience from Motor and Fire in addition to the Group's continuous effort in travel segments. The group recorded MYR10.6m in PBT in 1Q25 with a positive trend observed over the last three quarters.
The Group’s lower investment income in 1Q25 was due to several external factors, especially the global market volatility caused by the ongoing uncertainty arising from tariff policies under the United States current President. Regardless, the Group continues to maintain a largely conservative investment strategy.
“In 1Q25, we completed the rebalancing of our portfolio into investment in low-risk unit trust funds which are predominantly invested in Malaysian Government Securities, Government Investment Issues and Government Guaranteed Corporate Bonds. Our unit trust funds have benefited from the strong fixed income rally in April 2025, with potential upside from the anticipated central bank’s rate cut,” said Mr How.