Malaysian Re FY 2024 GWP tops US$500m; parent achieves record net profit
May 9 2024 by InsuranceAsia News
Malaysian Re’s parent MNRB Holdings has tripled its net profit to MYR428.3 million (US$90 million) in the financial year of 2024 which ended March 31, up from MYR142.6 million the year before, according to a stock exchange filing.
The company’s best-ever results in its 50-year history were primarily fuelled by strong underwriting performance coupled with robust investment returns, it said. The group, which offers reinsurance as well as general and family takaful business, saw its gross written premiums and gross written contributions (GWP/GWC) increase 17.6% year-on-year to MYR4 billion in FY 2024.
Reinsurance business
Malaysian Re achieved a record-breaking MYR2.5 billion (US$527.2 million) in GWP/GWC in the fiscal year of 2024, surpassing the MYR 2-billion mark for the first time. It reported a combined ratio of 95.5%, a four basis points year-on-year improvement.
The reinsurance/retakaful business’s profit after tax rose by 146% to MYR362.4 million from MYR108.2 million a year ago. Its international business grew by 14.2% to MYR513.5 million in FY2024.
Malaysian Re’s insurance service results climbed to MYR339.2 million in the latest financial year from MYR40.1 million previously.
These results stem from “the strategic business remodelling initiated in 2021, aimed at diversifying Malaysian Re’s business engines and mitigating the impact of prevalent natural catastrophes”, it said.
This included a focus on enhancing portfolio diversification, venturing into select new sectors including speciality lines and renewable and green energy, and optimising capital management, the company said.
Insurance and takaful
Overall revenue rose 21.1% to MYR3.6 billion in FY2024.
Operating revenue from its reinsurance business increased by 23.5% mainly driven by the growth in insurance revenue, by MYR325.3 million, contributed by specialty business, domestic and overseas treaties from the Middle East and North Africa business portfolios, as well as an increase in investment income of MYR55.2 million.
The operating revenue of its retakaful business was up 48.4% to MYR36.1 million, predominantly due to an increase in the family retakaful revenue.
Meanwhile, the general takaful’s operating revenue was at MYR838.4 million, a 33% growth from higher gross contribution from all classes of business.
The improvement in its reinsurance profit is due to “better insurance service result due to better current year claims experience, as compared to the previous year which was affected by catastrophe and large losses, coupled with higher investment income and favourable fair value movements from investments,” according to the company’s filing to Bursa Malaysia.
The growth in the group’s overall operating revenue was also due to an increase in its investment income, by MYR94.1 million.
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