MNRB profit jumps 73pc to RM45.5m

MNRB Holdings Bhd saw its profit jump 73 per cent to RM45.5 million for the financial year ended March 31 2010 due mainly to release in unearned premium reserves of Malaysian Re amounting to RM52.4 million, higher share of profits from reinsurance associate, investment income and wakalah fees from its units.

The profit, however, was partly offset by the provision for RM44.5 million impairment loss on MNRB’s investment in Principle Insurance Holdings Ltd (PIHL).

On April 28, PIHL announced the conditional sale of its subsidiaries, namely Principle Insurance Co Ltd and l’rinciple Marketing Services Ltd, to Al Salam Group Holding Co K.S.C.C a member company of the Kuwait based Al Madina Group, for an undisclosed sum.

Given the uncertainty surrounding PIHL, the group has made a full provision amounting RM44.5 million in the curent period for the impairment of its investment in P11Th.

"PIIIL has agreed to accept this offer from the Kuwait based company. Their intention is to recommence the trading and they have indicated an injection of 25 million (RM1I8 million) for recapitalisirig.

"MNRB hopes to see recommencing of business by third or fourth quarter this year," said MNRB executive vice-president and group chief financial officer Norazman Hashim. He was speaking to reporters after announcing the group’s financial results in Kuala Lumpur yesterday.

"PIlL wants to accept this offer from the Kuwait-based company. They intend to start trading again and would need 25 million to recapitalise. We hope to see this materialise by the fourth quarter this year," he said.

MNRB has three main subsidiaries that serve different market segments, namely Malaysian Re, which underwrites treaty and facultative reinsurance from the Malaysian market; Takatul lkhlas, which offers Islamic insurance for the local market; and MNRB Retakaful Bhd, which provides retakaful solutions.

Asked on the group’s outlook, Norazman replied that MNRB wants to expand its underwriting business outside Malaysia. "We are looking at expanding the general and family business of MNRB Retakaful in the overseas market." Currently, the general business is the larger contributor to MNRB Retakaful but the future growth is seen in the family segment.

NST