PETALING JAYA: MNRB Holdings Bhd
expects a challenging economic environment locally and globally, as inflationary pressures around the world remain elevated amidst higher energy prices, supply chain shocks and geopolitical risks in the Middle East and Ukraine.
In a filing with Bursa Malaysia, the company said these factors have kept interest rates high.
MNRB registered a higher net profit of RM84.6mil for the third quarter ended Dec 30, 2023, compared to RM57.4mil for the same quarter ended Dec 31, 2022.
The insurance company also recorded a higher revenue of RM980.87mil from RM803.69mil for the quarter under review.
Basic earnings per share stood at 10.80 sen versus 7.33 sen previously.
In a note to Bursa Malaysia, the group said the increase was due to favourable fair value movement of bond and sukuk markets of its reinsurance business and an improvement in the share of result of the associates.
For the cumulative period ended Dec 31, 2023, the group recorded a net profit of RM195.72mil compared to RM47.7mil for the corresponding period a year ago.
The group said the increase was on the back of the improved underwriting performance of the reinsurance and general takaful businesses because of better claims experience and a higher investment income despite the slight offsetting of unfavourable realised losses.
Its operating revenue was also higher at RM2.8bil from RM2.3bil.
“This increase was contributed by the surge in insurance and takaful revenue by RM371.0mil due to strong growth in the general takaful and reinsurance businesses. The growth in operating revenue was also a result of the improvement in investment income by RM78.5mil,” it said.
Going forward, MNRB said it will continue with its strategic approach on asset allocation, focusing on high yielding securities with strong fundamentals.
“For alpha enhancement purposes, the group sees opportunities in the local equity market amidst clarity in the national energy agenda under the National Energy Transition Plan, the National Industrial Master Plan 2030, the development of the Johor-Singapore Special Economic Zone, recovery in the global chip sector and stable domestic growth,” it said.
Additionally, the group said it aims to ensure a measured and steady progress of its sustainability commitments towards Net Zero Carbon Organisation by 2050.
“This includes the acceleration of the Sustainability Roadmap and managing the implementation of the sustainability action plans in alignment with regulatory requirements.”
