$MNRB / 6459 (MNRB HOLDINGS BERHAD): Q1FY25 Performance Overview

Total Revenue:
MNRB's total revenue declined by 0.5% to RM941.1 million. This decrease was primarily driven by a drop in insurance revenue from the family takaful business, which was partially offset by growth in both the general takaful and reinsurance segments.

Profit After Tax:
Profit after tax surged by 32.6% to RM92.2 million. The increase was largely due to a stronger insurance service result, attributed to improved claims experience compared to the corresponding period. However, this was partially offset by lower investment results, which were impacted by foreign exchange losses and unfavorable fair value movements.

Reinsurance Business:
Revenue for the reinsurance segment rose by 2.4%, driven by a RM3.5 million increase in insurance revenue, largely from international business growth in the Specialty portfolio and local voluntary cessions. Additionally, investment income grew by RM8.9 million. Profit before tax (PBT) in this segment increased significantly by RM27.7 million, from RM64.6 million to RM92.3 million, mainly due to improved claims experience.

Retakaful Business:
The retakaful segment experienced a decline in both total revenue and PBT, down by RM8.8 million and RM2.6 million respectively. This was mainly due to a decrease in takaful service revenue, which resulted from the rebalancing of portfolios.

General Takaful Business:
The general takaful segment recorded a total revenue of RM198.6 million, marking a 12.6% increase. This growth was primarily due to a RM21.7 million rise in takaful revenue, driven by stronger performance in the motor and fire businesses. PBT for this segment rose by RM5.8 million, from RM10.7 million to RM16.5 million, reflecting higher wakalah fees aligned with the growth in takaful service revenue.

Family Takaful Business:
Total revenue for the family takaful segment decreased to RM208.0 million, down RM27.3 million, largely due to reduced takaful service revenue following a decline in banca takaful business. The PBT for this segment slightly decreased by RM1.7 million, from RM7.4 million to RM5.7 million, primarily due to lower takaful service results, although this was somewhat offset by higher net investment returns.