KUALA LUMPUR, 27 August 2025 – Tune Protect Group Berhad (“Tune Protect” or “Group”; TUNEPRO, 5230) continued its strong momentum in 2Q25 and 1H25 with more than 100% Year-on-Year (“YoY”) growth of Profit Before Tax (“PBT”) and Profit After Tax (“PAT”) with improved net insurance service result and double digit improvement in combined ratio. How Kim Lian (“How”), Group Chief Executive Officer of Tune Protect said that the Group’s sustained financial performance in 2Q25 and 1H25 was driven by several critical factors including a resilient Travel segment.
Fourth consecutive quarter of profitable growth
“This was the Group’s fourth consecutive quarter of profitable growth which can be attributed to the robust Travel segment and improved Motor and Fire claims. Although our insurance revenue was down YoY in 2Q25 at RM86.5 million (-9.3%), this was mitigated by YoY growth of Gross Written Premium (“GWP”) in the Travel segment at +37.5% (2Q25), as well as improved combined ratio at 94.0% (2Q25) and 93.4% (1H25). This underscored the surge of overall profitability growth as evidenced by PBT and PAT of RM11.7 million (>100%) and RM9.6 million (>100%) respectively in 2Q25,” How elaborated.
There were other critical factors for the Group’s strong 2Q25 such as lower net incurred claims from more favourable Motor and Fire claims, and Travel growth increasing its weightage in the overall portfolio mix. Improvement in investment income, lower total other income and expenses as well as positive return from the Group’s share of results in its Thai associate also boosted 2Q25 results.
“The Group’s net incurred claims ratio from the Motor segment continued to improve in 2Q25, recording an improvement of 7% in loss ratio YoY. Our Motor segment has also stabilised towards an optimal portfolio mix with improved loss ratio, and we are looking at growing the preferred segments in Motor in 2H25,” said How.
Lower net incurred claims and attributable expenses ratio
The Group registered improved combined ratio of -11.2% YoY in 2Q25 mainly due to lower net incurred claims from a more favourable Motor and Fire claims experience in the quarter. In addition, Travel growth led to increased weightage which aligned with a slightly higher acquisition cost ratio of 1.1% while contributing to a lower net incurred claims and attributable expenses ratio of -10.7%.
Similarly, 1H25 PAT grew favourably by more than 100% with improved net insurance service result, growing by more than 100% and a 14.1% reduction in combined ratio, mainly driven by lower net incurred claims from a more encouraging Motor and Fire claims experience in 1H25.
“That led to PBT and PAT growth of more than 100% YoY contributed by several factors including improvement in investment income, lower total other income and expenses in line with our ongoing cost optimisation initiatives, as well as positive return from our share of results in our Thai associate,” said How.
Tactical assets allocation to enhance overall yield
Total investment income in 1H25 increased 18.9% YoY to RM19.5 million. The Group recorded RM715.6 million investment as of 30th June 2025 comprising unit trust funds (91%) and deposits (9%) in 2Q25. Unit trust funds comprised of fixed income funds (93%) and money market funds (7%).
“The Group had executed a Tactical Assets Allocation (“TAA”) by reallocating unit trust investments from the low-risk assets funds to corporate bond funds to take advantage of widening credit spreads compared to government bonds. The new TAA is expected to enhance the overall yield of the Group’s investment income, considering the impending Overnight Policy Rate (OPR) cuts,” said How.
Great strides in strategic partnerships, ESG and NPS
Alongside the Group’s notable financial performance in 1H25, it has taken great strides in its dealings with its airline partners, Online Travel Agents (“OTAs”), business-to-business (“B2B”) network as well as environmental, social and governance (“ESG”) rating.
“In partnership with AirAsia which is our key airline partner, the Group rolled out the Bundle Value Pack with Delay Lounge Pass to most markets in Asia to diversify income sources beyond insurance. We also rolled out the Universal Travel Insurance (Inbound Plan) across 16 markets in Asia, and enrolled 12 key travel agents of AirAsia, contributing approximately 20% of their portfolio. In addition, we completed the re-pricing or premium optimisation initiative for Australia and Japan markets for the inbound plan,” said How.
The Group expanded its distribution partners by onboarding 7 OTAs in Southeast Asia including Klook Thailand and Airpaz Malaysia, as well as expanded its B2B network to five new countries. It launched the One-Claim portal for web and mobile app in key Southeast Asia markets and expanded into the Middle East markets to harmonise the claims experience.
“We continued to be the only conventional general insurer included in the FTSE4Good ESG index, achieving the highest ESG Grading Band of 4 stars. The Group achieved an impressive new baseline for Net Promoter Score (“NPS”) of 41%, surpassing the industry benchmark of 35%. We are also proud of being recognised as Company of the Year (Insurance): Outstanding Community Care Award at the Sustainability and CSR Malaysia Awards 2025, ” said How.
Focused on driving topline and bottomline growth
How is optimistic about the Group’s outlook in 2H25 based on several key topline growth drivers which include Travel, Motor, Foreign Workers and non-insurance income.
“There could be an upside to passenger growth if AirAsia’s PN17 uplift plan progresses as intended, and this will work well in our favour. In addition, the Group is planning for offline channel expansion into Thailand and roll out the Delay Lounge Pass in all AirAsia markets, and the On-Time Service Guarantee,” said How.
The Motor segment will be driven by strategic growth in profitable segments and regions such as East Malaysia, private cars with sum insured of more than RM50,000 and continued expansion in the Motorcycle insurance segment. The Group will also expand through new strategic tie-ups and partnerships. It is targeting stronger growth in the Foreign Workers segment in 2H25. The Group is currently ranked 3rd in the Foreign Workers insurance space with a better claims ratio compared to the Motor segment. To boost the Group’s non-insurance income it plans to rollout ancillary services and premium lounge access for Business Class passengers. It is also targeting to launch other types of ancillary services such as e-Sim, baggage and airport transfers.
“The Group is focused on strengthening our bottomline by focusing on strategic shift towards profitable segments and preferred portfolio mix, in addition to continued cost efficiency initiatives supported by a disciplined expense management. Another key factor is improving motor claims ratio which is progressing well with expectations of reaching industry benchmarks through active claims management and price optimisation. Investment income is expected to remain consistent with trends in 1H25,” How concluded.
