KUALA LUMPUR: Tune Insurance Holdings Bhd’s earnings rose 12.2% on-year to RM16.143mil in its second quarter ended June 30, 2015 from RM14.34mil a year ago mainly due to the increases in the general insurance business.
The insurer said on Tuesday profit before tax increased by 17% to RM18.40mil. Its revenue increased by 13.5% to RM115.25mil from RM101.51mil a year ago due to higher gross earned premiums.
Earnings per share were higher at 2.15 sen compared with 1.91 sen.
Tune Ins’ profit before tax rose 17% to RM18.40mil mainly due to the increases in the profitability of its general insurance.
On the general reinsurance, it said operating revenue increased by RM4.4mil to RM31.40mil due to higher gross earned premiums of Malaysia and the Middle-east despite a decline in Indonesia.
As for the general insurance, operating revenue rose RM12.2mil to RM98.60mil due to increases in the gross earned premiums of RM12.3mil mainly from the fire, motor and travel class (FMT).
General insurance’s profit increased by RM4.9mil to RM8mil due to an increase in net earned premiums of the FMT.
Tune Ins said the revenue growth was mainly due to the robust profit growth recorded by Tune Insurance Malaysia Bhd (TIMB). In the second quarter, gross written premiums increased by 35.1% while net earned premiums rose 17.5%.
In the first half, its earnings were lower by 2.9% at RM32.62mil compared with RM33.59mil in the previous corresponding period. However, revenue was higher by 5.1% at RM226/50mil compared with RM215.46mil.
Tune Ins said the first half performance was boosted by the solid Q2 performance.
“Gross written premium (GWP) grew 10.7% on-year to RM248.5mil supported by strong performance of the global travel and TIMB operations.
“Net earned premiums (NEP) rose by 9.9% while operating revenue climbed 5.1% to RM226.5mil underpinned by growth in the motor and medical businesses coupled with growth in investment income of 15.3% on-year.
“Profit after tax posted a on-year flat growth, due to a one-time gain from the sale of the former headquarters building in Jalan Ampang in the first quarter of 2014.
“Excluding the sale, underlying profit after tax increased RM3.7mil or 12.0% on-year, driven by improvement in TIMB bottom line coupled with recovery of travel demand especially in Malaysia and Thailand.
TIH chief executive officer, Junior Cho said 2015 started the year with some uncertainty on growth due to subdued regional travel demand on the heels of QZ8501 and the implementation of GST in Malaysia.
“While first quarter showed strong resilience of our operations, I am extremely pleased with our second quarter results, recording year-on-year, double digit growth across all our core lines of businesses.
“This is a remarkable achievement also especially in light of the continuing economic turbulence and political uncertainties in the region,” Cho said.
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