All posts by Tam Hse Leng

Tune Bekerjasama Dengan Super Strap Sediakan Insurans Bagasi

KUALA LUMPUR, 19 Feb (Bernama) — Tune Protect Group Bhd bekerjasama dengan penyedia perkhidmatan pembalut bagasi, Super Strap, untuk menawarkan pengembara yang membalut bagasi daftar masuk mereka perlindungan insurans percuma bagi sebarang kehilangan semasa dalam penerbangan.

Dikenali sebagai ‘Baggage Wrap Insurance’, ia ditaja jamin oleh Tune Insurance Malaysia Bhd, kata Tune Protect Group dalam satu kenyataan hari ini.

Perkhidmatan itu ditawarkan di enam lokasi iaitu Lapangan Terbang Antarabangsa KL (KLIA), Lapangan Terbang Miri, Lapangan Terbang Tawau, Lapangan Terbang Sultan Ismail Petra (Kota Baharu), Lapangan Terbang Sultan Abdul Aziz (Subang), dan KL Sentral.

Kerjasama dengan Super Strap ini adalah satu lagi kaedah bagi kami dalam menawarkan perlindungan kepada pengembara, kata Ketua Pegawai Eksekutif Tune Protect Group, Junior Cho.

Source: BERNAMA, 19 February 2016

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Tune Protect eyes better results

PETALING JAYA: Tune Protect Group Bhd (formerly Tune Ins Holdings Bhd), which saw its third quarter earnings drop by 20%, is unperturbed by the external headwinds and slower domestic consumption as it strives to chalk up a better set of results this year.

Its chief executive officer Junior Cho (pic) told StarBiz that despite the anticipated softness in domestic consumption and external uncertainties, the company is optimistic to maintain strong sales growth this year underpinned by its key strategic initiatives.

Without going into specific numbers, he said: “We expect a double digit growth in top line performance this year as we continue to actively take initiatives to further grow our business and heighten awareness of the value of travel insurance.

“The company will also continue to aggressively pursue strategic partnerships in the region.

“As for our general insurance business, we expect to outpace the industry average with high single digit growth for Tune Insurance Malaysia Bhd (TIMB) despite the continued softness in the market, through innovative product profiling and benefit enhancements,’’ Cho noted.

TIMB is the group’s non-life insurance unit.

He said Tune Protect would bank on two key channels in a bid to outpace the general insurance industry growth of mid-single digit by this year.

He said they involved growing its global travel business (through innovative products, new markets and new partnerships) as well as enhancing its general insurance business and digitising its direct-to-consumer products.

In September last year, the company launched its Direct-to-Consumer website whereby consumers could directly and easily purchase a number of lifestyle based products including travel insurance.

Meanwhile, analysts are expecting a single digit expansion in the premium income of the life and non-life insurance sectors in Malaysia over the next few years.

CIMB Research is urging investors to focus on insurance companies that have exposure to overseas markets and the takaful business, given the cautious outlook for growth in the conventional insurance sector.

It has kept an “overweight” rating on Malaysia’s insurance sector, naming Tune Protect Group and Syarikat Takaful Malaysia Bhd as its top picks.

The research house is projecting single digit growth rates for the industry’s premiums in 2015-16, at 5%-6% for general insurance and 7%-8% for life insurance.

For the third quarter ended Sept 30, 2015, Tune Protect Group’s net profits were down by some 20% to RM12.9mil compared with RM16.2mil a year ago. Earnings for the nine months stood at RM47.7mil, an 8.2% decrease over the same period last year mainly due to higher management expenses which include higher royalty fees related to the use of the Tune trademark and cost of rebranding, as well as the one-time sale of building in 2014.

However, operating revenue for the said quarter increased by 10.5% to RM121mil while net earned premium grew 18.9% to RM80.7mil.

Despite the weaker third quarter earnings, analysts are reiterating their add and buy calls on the company’s stock. CIMB Research said it was maintaining an “add” call on Tune Protect Group although it was cutting its financial year (FY) 2015 and FY 2017 forecast earnings per share by about 17-18%.

This was premised on the growth potential for its travel insurance business in the region, positive prospects for its non-life insurance unit in Thailand in the longer term and possibly more tie-ups with other airlines, it noted.

An insurance product manager and underwriter across the Asia-Pacific, Tune Protect has online and general insurance businesses.

It also provides online travel protection products for AirAsia Bhd and has partnerships with Cebu Pacific and Air Arabia and has footprints in over 30 countries across four continents, including countries in the Middle East-North Africa and European Union regions.

For this year, Cho said among some of the broad strategies or areas of focus to boost earnings would be to increase its global travel business, grow its offline and biz-to-biz partnerships including establishing new airline partnerships and grow its market presence in the Middle East and Asean.

On its latest plans in Indonesia after the recent termination agreement with Indonesia-based insurer PT Asuransi Staco Mandiri, he said: “We will continue to evaluate a number of opportunities within Indonesia.

“However, we cannot comment on any specific timeline at the moment.

At the same time, the company will continue to actively evaluate opportunities across Asean to further our expansion strategy. This is both for the general insurance and online business (including digital and travel partnerships).” The company’s shares were down by 2 sen to RM1.29 last Thursday.

 

Source: The Star, 4 January 2016

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Tune Protect focuses on making insurance simple, convenient and affordable

Technology is the single most impactful force that is shaping how the world is doing business today. A formidable friend or foe, it remains the bridge that connects customers who require information on the go in the most convenient manner. Riding this wave of change, Tune Insurance has realigned its business focus and refreshed its brand proposition by reintroducing itself as Tune Protect.

“Customer demands are pushing change. Demands for easier access to information, simplified processes and personalised experience are just among some of the most prevalent influencers of change,” says Junior Cho, CEO of Tune Protect Group. “The all-new Tune Protect is catering to these demands by making its product more relevant to the diverse lifestyle needs of customers in an easy, convenient and simple manner.”

Tune Protect makes its debut in the digital insurance business with four lifestyle products on its website tuneprotect.com – Tune Guard, Tune Drive Care, Tune EZ Term and Tune TrIP. Specially targeted at Malaysian consumers, the niche products are customised to meet people’s most basic requirements.

Tune Guard is a customised plan catering to victims of snatch theft and robberies, while Tune Drive Care provides car passenger coverage. Tune EZ Term provides affordable and simple life insurance protection for a fixed five-year term, and Tune TrIP is standalone travel insurance that provides “before, during and after” benefits across all countries.

A key player in the field, Tune Protect initially gained rapid popularity as the exclusive insurer of low-cost airline leader AirAsia. It has since expanded its footprint to collaborate with other airlines and travel partners across the globe, gaining a reputation among the region’s fastest-growing insurers.

It is the same brand of consumer trust that allowed Tune Protect to carve a client-focused niche in the insurance industry. Core to the group’s operations are its general insurance business through subsidiary Tune Insurance Malaysia.

Since its incorporation in 2011, Tune Protect has grown to serve more than 25 million policyholders worldwide, with more than 12 million policies issued in Malaysia alone. Today, Tune Protect is present in more than 50 countries and territories, with general insurance entities in Malaysia and Thailand. It is also represented with a joint venture in the Middle East.

“Insurance has long been thought of as a complex, costly and intangible product; that is why many people are still reluctant to spend on it,” Cho says. “The key is finding innovations to make the product not only tangible to the consumer, but also relevant, accessible and indispensable.”

Among Tune Protect’s innovative campaigns is the 10 baht (HK$2.16) insurance plan launched in Thailand last year through popular top-up machines called Boonterm kiosks. With coverage of 10,000 baht, the plan features simple and affordable insurance packages targeted at low- to middle-income customers aged between 20 and 60 – a market consisting of nearly 1.8 million individuals.

More recently, Tune Protect launched Thai Rice Insurance, offering farmers protection from losses suffered due to floods, drought, storms, pests and diseases. It also established a collaboration with Advanced Info Service, Thailand’s leading mobile phone network operator, providing travel personal accident coverage to customers who sign up for the network’s international roaming services.

“Rather than driving profits, these campaigns focus on building brand awareness among the young generation – and the results are highly promising,” Cho says. “More consumers are discovering affordable policies that match their lifestyles. The next stage will be to cover similar markets such as Indonesia, the Philippines and the Middle East, which remain untapped by such innovative campaigns.”

Last year, Tune Protect claimed the top award as Forbes Asia’s “Best of the Best” among 200 outstanding listed companies in the Asia-Pacific with annual revenues under

US$1 billion. Today, it is on its way to becoming Asean’s leading digital insurance franchise.

“We are about making insurance simple, easy, convenient, relevant and affordable – giving customers the kind of peace of mind they are looking for wherever in the world they are headed,” Cho says. “We want to break geographical boundaries and empower consumers to set the trends for the insurance industry.”

Open to diversifying into other complementary sectors, Tune Protect aims to grow with potential partners in Asean, and ultimately have a ubiquitous footprint globally.

 

Source: South China Morning Post, 9 December 2015

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Tune Protect’s 9MFY15 earnings meet expectations

KUCHING: Tune Protect Group Bhd’s (Tune Protect) first nine months of financial year 2015 (9MFY15) earnings has met analysts’ expectations, resulting in unchanged FY15 and FY16 earnings forecasts.

In a press release on Bursa Malaysia, Tune Protect said that over 9M, profit after tax came in at RM47.7 million, an 8.2 per cent decrease over the same period last year – mainly due to higher management expenses which include higher royalty fees related to the use of the Tune trademark and cost of rebranding, as well as the one-time sale of building in 2014.

According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), after stripping out one-off gain of RM4.3 million from sale of building in 9MFY14, the normalized earnings in 9MFY15 saw a flat on-year growth.

Overall, core cumulative earnings of RM45.5 million came in within MIDF Research’s expectation at 74 per cent of the research arm’s full-year estimate but below street estimate at only 58 per cent.

Premised on above, MIDF Research maintained its FY15 and FY16 earnings forecasts.

Hence, MIDF Research reiterated its ‘buy’ stance with an unchanged target price of RM1.86 per share.

The research arm noted that key catalysts for the earnings growth of 12.9 per cent year on year (y-o-y) next year will be as following rising air travel demand growth which is expected to increase the purchase of travel insurance, regional exposure via partnerships with airlines such as AirAsia, Cebu Pacific and Air Arabia as well as established arrangements with local insurance partners across the region and new investment opportunities though overseas ventures.

Meanwhile, it underlined that the downside risks include further economic slowdown will pose an adverse impact on the group’s travel insurance business as consumers’ spending on air travel is discretionary and strain on capital position in the event of higher insurance claims.

Source: The Borneo Post; 18 November 2015

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Tune Protect’s 3Q profit falls 20%

KUALA LUMPUR (Nov 16): Tune Protect Group Bhd, formerly Tune Ins Holdings Bhd, posted a 20.44% year-on-year (y-o-y) drop in its net profit for the third quarter ended Sept 30, 2015 (3QFY15) to RM12.86 million from RM16.17 million, mainly due to higher management expenses and a one-off rebranding spend.

Its revenue for the quarter, on the other hand, rose 10.53% y-o-y to RM121.05 million, Tune’s filing with Bursa Malaysia today showed.

“In light of the softer economic outlook and ongoing geo-political circumstances, the group posted respectable, double-digit growth with strong contribution mainly from our Global Travel business.

“This year, we incurred higher management expenses due to higher royalty fees in the licensing of the Tune trademark, which was partially deferred to this year, and a one-time Tune Protect rebranding spend,” said Tune’s chief executive officer Junior Cho.

Cho added that there was an 11.7% growth in Tune’s Global Travel business for the nine-month period (9MFY15), while its Malaysia’s general insurance business jumped by 38.9% in the same period — after taking out the one-time gain from selling its former headquarters on Jalan Ampang last year.

For 9MFY15, Tune’s net profit came to RM45.49 million or 6.05 sen a share, 8.59% lower than the previous corresponding period’s RM49.76 million or 6.62 sen a share. Revenue, however, climbed by 6.95% to RM347.55 million.

Cho said its Global Travel business’ growth came because of “healthy travel demand, despite recent regional events ranging from Bangkok bombings, Bali volcanic activity, and prolonged haze conditions in Malaysia, Singapore and Indonesia”.

He is banking on Global Travel business’ growth for the remainder of 2015, even when taking 2016’s slower economic growth forecast into the equation.

“We see increased travel demand as we enter the last quarter of 2015 and with our continued education marketing and take-up rate initiatives, we hope to increase awareness in the value of travel insurance and capitalise on the peak travel season,” Cho added.

“In addition, we will continue our rollout into travel agencies until mid-2016 to further extend our product offerings to customers who prefer doing travel bookings through offline channels,” he said.

However, he conceded that the general insurance industry might face slower growth because of the uncertainty in the macroeconomic landscape.

“While Tune Insurance Malaysia Bhd (Tune’s Malaysia general insurance business) will face similar headwinds, it is our expectation that its growth should outpace the industry average for the remainder of the year,” he added.

Tune, part of the AirAsia Group of companies, closed flat today at RM1.47 after hitting a low of RM1.45 earlier, giving it a market capitalisation of RM1.11 billion.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

Source: theedgemarkets.com; 16 November 2015

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Tune Protect Sees Strong Growth In Next 3 Years

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

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