- Group’s 2Q21 underwriting profit rose >100% YoY
- Underwriting profit lifted by higher NEP and improved net claims ratio
- Growing Health and Lifestyle through strategic partnerships
Group Chief Executive Officer of Tune Protect Rohit Nambiar (“Rohit”) is positive about the Group’s prospects and attributes the commendable 2Q2021 results to higher Net Earned Premium (“NEP”) and improved net claims ratio. The Group’s NEP increased 22% to RM43.2 million mainly contributed by the Group’s reinsurance subsidiary, Tune Protect Re while net claims ratio improved by 36.9%.
Group Performance
Group Performance by Key Business Pillars
The Group is banking on the growing strength of its 3 core business pillars of Health, Lifestyle, and Small and Medium Enterprise (“SME”) to drive future growth. In the 2Q2021, the Group registered GWP of RM3.9 million, RM37.2 million and RM9.2 million from Health, Lifestyle and SME respectively.
“As we continue to grow our 3 core business pillars, contribution from our commercial business to the overall business portfolio is expected to reduce. As our Lifestyle and Health segments start to gain attention, we will continue to introduce more products and propositions in these segments across different markets in ASEAN and the Middle East,” said Rohit.
New growth opportunities in Health and Lifestyle
“The strategies underlying our Health and Lifestyle pillars are to offer customisable and value-added solutions to our customers via our business-to-consumer (B2C) channels and widen our distribution network through partnerships,” explained Rohit.
To date, the Group has launched several products in the Health segment such as PRO-Health Medical – a cashless health coverage targeting millennials; VSafe COVID which covers for the infection of the disease and the side effects of the vaccine; and myFlexi CI – a customisable critical illness plan. In addition to that, these products are complemented with value-added propositions offered by the Group’s strategic partners such as emotional wellbeing assessment for policyholders; teleconsultation as well as second medical opinion services.
“The Group will be replicating the same products and propositions across multiple geographies. We are also planning a new no frills cashless health coverage leveraging on low prices to target the B40 segment,” explained Rohit.
There were also innovative offerings from the Lifestyle segment, such as Home Easy & Home Shield, a residential building and home content protection with great flexibility for homeowners to tailor their plan with optional add-ons to meet their individual needs. It also offers up to 40% savings in premium with complimentary benefits if customers opt to cover both their homes and its contents. The Group also launched student assurance in the Middle East and inland transportation insurance in Indonesia and Thailand.
In the pipeline, the Group will soon be introducing pet-related coverages and eyewear protection.
Innovative digital solutions for SMEs
In the SME segment, the Group intends to provide innovative digital propositions to its SME customers. In 1H2021, the Group introduced worksites marketing by providing free training to SMEs and cross-selling insurance to SMEs.
Moving forward, the Group has various SME solutions in the pipeline, including SME Digital, an online insurance for SME/micro-SME and consignment insurance for e-commerce entrepreneurs. To encourage the take up of insurance among the SMEs, the Group will introduce an easy payment plan with flexible premium instalment of up to 6 months and provide complementary e-business training for SME customers via a strategic partnership with Redbeat Academy.
Leading the way in ESG and DE&I
The Group also leads the way on the Environmental, Social and Governance (“ESG”) front, with a rating of 3.1 (out of 5.0) in the latest FTSE ESG semi-annual review 2021. In addition, the Group has also moved up a quartile to the top 25% by ESG Ratings amongst PLCs in FBM EMAS which was assessed by FTSE Russell, making it the only insurer in that quartile.
“The Group is committed to further enhancing our ESG practices for the benefit of our customers, shareholders and other key stakeholders. Furthermore, we are now a corporate member of the 30% Club Malaysia, a local chapter of a global business-led campaign focused on building an ecosystem of businesses to promote diversity, equity, and inclusion with a focus on gender balance on Boards and C-suites,” Rohit concluded.
1 & 2 Consist of investment income, realised gains and fair value gains
3 Excluding management expenses
