KUALA LUMPUR, 28 May 2025 – Tune Protect Group Berhad (“Tune Protect” or “Group”; TUNEPRO, 5230) started its new financial year encouragingly in 1Q25 with 100% Year-on-Year (“YoY”) growth of Profit After Tax (“PAT”) on the back of notable net insurance service result. How Kim Lian (“How”), Tune Protect Group’s Chief Executive Officer highlighted several factors that drove the Group’s strong financial performance in 1Q25.
Exponential PAT growth in line with notable net insurance service result
Tune Protect registered more than 100% growth in net insurance service result, or RM5.8 million in 1Q25 with a 16.4% reduction in combined ratio mainly driven by lower net incurred claims, primarily due to more favourable claims experience for Motor and Fire.
“Overall the Group showed financial resilience in the quarter with positive trends with more than 100% growth in PAT YoY attributable to the growth in net insurance service result and the improvement in total other income and expenses.” said How. The Group recorded a PAT of RM7.4 million in 1Q25, compared to a Loss After Tax (LAT) of RM3.9 million YoY.
The slight decline in insurance revenue by 6.5% to RM88.5 million for 1Q2025 was partially mitigated by the weightage increase in the Group’s Travel portfolio. Despite the higher acquisition cost, this is compensated with the improvement in claims and attributable expenses.
“Combined ratio was another key financial highlight. It continued to improve driven by lower net incurred claims and attributable expenses. The improved combined ratio of 93.4% was due to more favourable claims experience for the Motor and Fire segments. On the other hand, the negative share of results recorded by our associate company in Thailand was due to claims on impact of the earthquake in Myanmar, causing aftershocks in Thailand in 1Q25,” How continued.
Positive bottom line led by favourable claims
Riding on the wave of the commendable financial performance, the Group’s bottom line strengthened evidenced by the positive trend of Profit Before Tax (“PBT”). This was led by favourable claims experience from Motor and Fire in addition to the Group’s continuous effort in travel segments. The Group recorded RM10.6 million in PBT in 1Q25 with a positive trend observed over the last three quarters.
Investment income impacted by US tariffs, market volatility
The Group’s lower investment income in 1Q25 was due to several external factors, especially the global market volatility caused by the ongoing uncertainty arising from tariff policies under the United States current President. Regardless, the Group continues to maintain a largely conservative investment strategy.
“In 1Q25, we completed the rebalancing of our portfolio into investment in low-risk unit trust funds which are predominantly invested in Malaysian Government Securities, Government Investment Issues and Government Guaranteed Corporate Bonds. Our unit trust funds have benefited from the strong fixed income rally in April 2025, with potential upside from the anticipated central bank’s rate cut,” said How.
Travel segment boosted by strong take-up rate
Tune Protect continues to expand its market presence and reinforce its position as a digital Travel insurer across Asia and the EMEIA regions. In Asia, the Group activated 6 of the top 10 key agents for its airline partner, bringing the total number of travel agents in Malaysia to 263 as of April 2025. Its regional B2B expansion extended into four new markets, namely Zambia, Sri Lanka, Pakistan, and Kenya.
Distribution channels were further expanded through strategic digital partnerships, including AirPaz in Malaysia, Gettgo in Thailand, and TrueDtac’s e-SIM platform, enabling seamless access to travel and personal accident insurance. In EMEIA, the launch of Pet Health insurance via online aggregator Shory, showcases Tune Protect’s agility in catering to evolving consumer needs.
The Group delivered a 22% YoY revenue increase in the travel segment, driven by revenue optimisation and take up rate initiatives. Particularly in Australia and Japan, Tune Protect rolled out a premium revision exercise for inbound travel product benchmarking against peers in those markets. The Group also continued to achieve a 50% surge in take-up rates on airline platforms, boosted by enhanced UI/UX. The Delay Lounge Pass within the AirAsia Value Pack Bundle has been launched in Vietnam and Indonesia in 1Q25, achieving strong traction with overall 500,000 policies sold as at March 2025.
These results reflect the Group’s commitment to innovation, customer-centricity, and delivering value-added services beyond traditional insurance offerings.
Improved Motor loss ratio
Tune Protect reported a second consecutive quarter of improvement in its 1Q25 Net Claims Incurred (NCI) ratio, primarily driven by enhanced claims management practices. The Group achieved a 5-percentage point YoY reduction in its loss ratio in 1Q25, reflecting improved operational efficiency in claims handling. This initiative will continue to be scaled in the coming quarters, with the expectations of further improvement in loss ratio performance.
In parallel, Tune Protect continued to drive underwriting profitability through price and portfolio optimisation. The average premium for Private Car policies, including Comprehensive and Third Party, Fire and Theft rose by 6% YoY, aligned with the implementation of Phase 2A repricing. Meanwhile, the company’s portfolio mix continued to evolve positively, with the motorcycle segment growing to 18.4% in 1Q25 (up from 17.6% in 4Q24), and Private Car Comprehensive policies above RM50,000 increasing to 25.5% (from 25.1%). These strategic shifts reflect Tune Protect’s continued focus on enhancing risk selection and pricing optimisation to sustain the Motor portfolio in the long term.
Focusing on 3 key pillars with innovative offerings
In line with the Group’s objectives in the travel segment, it is focusing on the 3 pillars of expanding its market presence and reach; establishing a travel centre of excellence; and going beyond insurance for travel experience. Several key initiatives are in the pipeline to further support the Group’s growth ambitions in these 3 key pillars.
Tune Protect will continue to expand its geographic footprint and digital distribution capabilities across key growth markets. In the pipeline, the Group will be extending its insurance product offerings into Pakistan and Uzbekistan, reinforcing its presence in new and emerging markets. Additionally, the reach of its travel insurance products will be broadened through partnerships with online travel agent AirPaz, in both the Indonesia and Thailand markets. Tune Protect will also be rolling out its inbound travel products to the Philippines, while expanding its ticket refund insurance and Sports Personal Accident (PA) offerings through Ticket2U to additional markets.
The Group is also set to launch innovative travel related offerings to enhance travel protection for its customers. This includes Baggage Shield, a new insurance package designed to cover sports equipment and checked-in baggage. In line with its commitment to pricing excellence, the company will also continue conducting pricing reviews across selected primary markets to ensure competitiveness and value for its airline partner’s products.
Tune Protect is expanding its Delay Lounge Pass offering to the Philippines, extending this premium benefit to another key ASEAN market and reinforcing its commitment to regional growth. As part of its strategy to diversify ancillary offerings, the Group will be introducing new value-added services such as Flight Watcher and Travel eSIM. These enhancements are designed to unlock new revenue streams while enriching the overall customer experience and engagement across its travel ecosystem.
