Tune Protect Group Berhad is targeting to achieve a high single-digit to low double-digit growth in net profit in the next three years, driven by strong growth in its travel and general insurance segments.
The company, previously known as Tune Ins Holdings Berhad, will continue to focus on enhancing its business to be a global player in travel insurance as well as strengthening its digital-to-consumer business.
“The hope of recent rebranding will certainly deliver promises to customers in making claim processes simple and well balance thus giving greater recognition to drive customer experiences. This will certainly help us in realising our targets (in the next three years),” CEO Junior Cho told The Malaysian Reserve recently.
For the second-quarter ended June 30, 2015, Tune Protect’s net profit increased 12.5% to RM16.1 million compared to RM14.3 million a year earlier while revenue rose to RM115.3 million from RM101.5 million previously.
For the sixth-month period, Tune Protect registered a net profit of RM32.6 million, 2.9% lower compared to RM33.6 million a year ago, on the back of RM226.5 million in revenue.
In 2014, Tune Protect’s gross written premiums grew 9% against 2013 while net earned premium growth increase 11%.
Cho said the growth in the travel insurance segment, which has been growing at a double-digit rate, will be driven by the higher recognition for the needs of travel insurance and healthy regional travel.
Cho said the travel insurance market is still under penetrated and stressed the importance of educating consumers on the need for such insurance.
In Malaysia, the penetration rate for travel insurance is 25% and there is still room for growth.
“We are always open for opportunities. If there is anything viable, then we will look for it. Our aim is to become a global player for travel insurance,” he said, adding that partnership and joint venture are its strategies.
He said the company will be focusing within the Asean region with Indonesia as a good potential market.
He said Tune Protect currently has three airline partners namely AirAsia group (its sister company), Air Arabia and Cebu Pacific Airways.
Asked on the issue of detariffication that is likely to take place in phases starting 2016, Cho sees it as very favourable to consumers and the industry as the premiums are based on the risk profile of the drivers or consumers.
“It is great for the industry and will be kicking off in phases. But, we are still waiting for the full role (as an insurance provider) out of the detariffication,” he said.
“I view it positively as consumers with low risk will certainly benefit.”
Source: The Malaysian Reserve; 11 November 2015