KUALA LUMPUR, Nov 30 (Bernama) -- MNRB Holdings Bhd (MNRB) recorded an 80 per cent increase in net profit for the first half-year financial period ended Sept 30, 2019, to RM86.43 million from RM47.98 million in the same period last year.

In a statement today, the reinsurer and takaful operator said all its operating subsidiaries, namely Malaysian Reinsurance Bhd (Malaysian Re), Takaful Ikhlas Family Bhd and Takaful Ikhlas General Bhd, contributed to the substantial improvement to the group's bottom line.

Revenue for the first six months rose to RM1.22 billion from RM1.10 billion previously.

The company said gross premiums chalked up an 11 per cent growth during the half-year to RM1.1 billion, from RM963.2 million a year ago.  

Likewise, the group net investment income soared by 147 per cent year-on-year (y-o-y) to RM316.3 million from RM128 million previously.

MNRB president and group chief executive officer Mohd Din Merican said MNRB's strategy to enhance its investment yield while maintaining healthy cash flow had shown a positive impact on the value of its investment portfolios. 

"Our investment returns, especially for Takaful Ikhlas Family, had surged positively during this period, boosted by the rally in the local bond market since late last year," he said.

On the subsidiaries’ performance, Malaysian Re’s gross premium grew by nine per cent during the period to RM634.2 million from RM581.7 million last year.  

MNRB said higher premiums were recorded across all business units within Malaysian Re. In addition, new initiatives undertaken by Malaysian Re since early this year to develop its new international business portfolio had started showing results and contributed to the improved top-line observed during the period.

At the same time, Takaful Ikhlas’ gross contribution jumped by 13 per cent to RM431.8 million, from RM381.5 million last year.  

The growth came from both Takaful Ikhlas Family and Takaful Ikhlas General, which registered a growth of 12 per cent and 16 per cent, respectively. 

As a result, the net profit of the group’s takaful businesses rose sharply by 163 per cent to RM43.2 million, from RM16.4 million last year, contributed by higher growth in gross contribution, coupled with the improved net investment income.

In August this year, Takaful Ikhlas General entered into a strategic bancatakaful partnership with CIMB Islamic Bank.  

Total gross contribution of RM8.3 million had already been recorded up to Sept 30, MNRB said.

“With this encouraging result, Takaful Ikhlas General is confident that it will achieve the partnership’s joint target of RM168 million, or 11 per cent y-o-y over the next five years,” MNRB said. 

Takaful Ikhlas Family had collaborated with “community based” organisations to provide financial assistance and protection for the B40 group. 

In addition, Takaful Ikhlas General had recently launched Ikhlas e-Hailing, one of the most sought-after service nationwide, an add-on to its Ikhlas Private Car Takaful product. 

"I am delighted by the speed at which we are executing the strategic priorities that we announced last year. Moving forward, our focus now is to sustain this growth. We will continue to enhance our product offerings, develop innovative products, strengthen our digital platforms and improve our customer experience,” said Mohd Din. 

MNRB recently declared an interim dividend of 2.5 per cent and concurrently, offered a dividend reinvestment plan (DRP) to all its shareholders. Under the DRP, shareholders of MNRB are given an opportunity to reinvest their above dividend entitlement into new MNRB shares at about 10 per cent discount from the current price.  

The new shares to be issued by MNRB pursuant to the DRP are expected to be listed by mid-December this year.