PETALING JAYA: Tune Protect Group Bhd
is targeting top-line growth of over 20% for 2026, driven by its core travel and fire segments, while maintaining disciplined underwriting.
Although the insurance company’s financial year 2025 (FY25) net profit of RM26.5mn fell short of our expectations, TA Research said it remains positive on the company.
“We believe its growth trajectory is sustainable, supported by the continued recovery and strengthening momentum of the travel segment.
“Maintain Buy recommendation with a target price of RM0.46 per share based on 0.6 times 2026 price-to-book,” the research firm said in a report.
Over the FY25 period, Tune Protect saw lower-than anticipated insurance revenue, while operating expenses were higher-than-expected, said TA.
On a quarter-on-quarter basis, its net profit declined by 9.6% to RM5.7mil despite an 8.4% increase in revenue to RM94.9mil.
On a positive note, the research firm said FY25 remained a commendable year operationally. “Net insurance service result surged to RM40.4mil, up significantly from RM9.7mil in FY24. “The combined ratio improved by 8.6 percentage points to 90.5%, supported by favourable motor and fire claims experience, a higher contribution from the travel segment and improved cost efficiency.”
The travel segment’s portfolio weightage increased to 44% from 34% in FY24, underpinned by a 17.8% rise in policy count and a 7.1% increase in average premium. Meanwhile, the motor loss ratio improved by 14.3 percentage points year-on-year, reflecting a stronger focus on the more profitable private car segment.
However, TA said it had cut FY26-27 earnings estimates slightly after incorporating FY25 numbers.
In a statement on Thursday, Tune Protect group chief executive officer How Kim Lian said the FY25 growth was underpinned by strong net insurance service results. This was complemented by higher investment income arising from its strategy to shift unit trust investments from low-risk asset funds into corporate bond funds.
“We also managed to lower total other income and expenses in line with our ongoing cost optimisation initiatives. Furthermore, the share of results from the group’s Thai Associate showed significant improvement,” How said.
The group said growth in the travel segment is expected to remain robust, supported by the Visit Malaysia 2026 campaign, which is set to boost inbound tourism, while a stronger ringgit is anticipated to encourage outbound travel.
“Both trends are expected to drive continued demand for Travel Personal Accident coverage, reinforcing the group’s confidence in sustaining positive performance as it moves into the next phase of its strategic journey,” Tune Protect said in the statement.
