KUALA LUMPUR: MNRB Holdings Bhd (MNRB) second quarter ended September 30, 2023 net profit jumped three fold to RM41.57 million on improved underwriting performance and increased inevstment income.
The higher earnings were attributed to the improved underwriting performance of the reinsurance and general takaful businesses, increased investment income and favourable fair value movement of investments and positive share of results of associates compared to a share of loss in the corresponding period.
Quarterly revenue also increased to RM935.23 million from RM777.13 million previously, according to its filing to Bursa Malaysia today.
As a result, the company registered higher earnings per share of 5.31 sen compared to 1.72 sen in 2Q22.
For the cumulative period of six months, MNRB recorded a net profit of RM111.11 million against a net loss of RM9.71 million a year ago, while revenue rose to RM1.80 billion from RM1.53 billion.
On prospects, MNRB said the company continues to expect a challenging economic environment locally and globally as inflationary pressures around the world remains elevated amidst soaring energy prices, supply chain shocks and geopolitical risks in the Middle East and Ukraine.
This has kept interest rates high, further constraining credit rating and risking slower growth.
"With the overnight policy rate remaining at three per cent for the rest of this year, a continuation of the company's strategic approach to asset allocation focusing on high yielding securities with strong fundamentals, will continue to be integral to capital preservation for the company.
"For alpha enhancement purposes, the company sees opportunities in the local equity market amidst clarity in the national energy agenda under the National Energy Transition Plan and stable domestic growth," it noted.
Despite the challenges, MNRB is optimistic that the firm foundation of its business diversification, coupled with the effective implementation of our strategic plan, will propel the company to the growth trajectory outlined in its business plan.
The company said its efforts continue with the enhancement of its Sustainability Roadmap, which defines essential action plans for mitigating climate risk, advancing social initiatives, and meeting governance standards to ensure business sustainability.
