58 redundancies at Malaysia’s Tune InsuranceDecember 10 2018 by InsuranceAsia News Staff
58 employees will leave Tune Insurance Malaysia over the next three months as it completes a voluntary separation scheme (VSS).
A filing with Bursa Malaysia, the Malaysian stock exchange, said: “Employees whose applications were accepted will be released from December 2018 till February 2019 in order to ensure a smooth transition process. The payout for the VSS is assessed to be approximately M$4 million [approximately US$1 million].”
The announcement explained the decision behind the redundancies: “The VSS was implemented as part of Tune Insurance’s business transformation and restructuring plans for the immediate term in line with the group’s digitalisation journey. Through the VSS, Tune Insurance intends to maximise its manpower utilisation and increase its operational efficiency and productivity.”
The insurer has been handling employee concerns through staff briefings and a dedicated help desk whitle the firm has also been assisting employees with career transitioning and other support.
Tune Insurance, part of the Tune Protect Group, has over 450 employees across 20 branches offering both general insurance, in addition to life and general reinsurance business via Labuan. The firm, which has an extensive partnership with sister company Air Asia, is overseen by chief executive Razman Hafidz Bin Abu Zarim, who joined in July 2016.
On December 7, the company’s shares had a market capitalisation of M$451 million; it has struggled this year and reported a 28% fall in net quarter profit to M$9.1 million for the quarter ending September 30.
Tune Protect is part of the Tune Group, founded by Malaysian entrepreneurs Tony Fernandes and Kamarudin Meranun.
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