- Profitability Sustained: PAT grew more than double YoY for 9M25; fifth consecutive quarter of profits and positive Net Insurance Service Result
- Travel Segment Momentum: Travel GWP surged 36.4% in 3Q25 and 31.8% in 9M25 YoY, with portfolio mix rising to 46% (from 37% a year ago), reinforcing a shift toward scalable, higher-margin products
- New income streams beyond insurance: Ancillary income and Tech fee contributions quadrupled since 1Q25, reaching RM13.18 million, supporting the Group’s strategy to unlock new revenue streams beyond insurance
Improved Net Insurance Service Result and Combined Ratio
The Group’s Net Insurance Service Result grew 55.7% YoY in 3Q25, driven by lower net incurred claims from a more favourable Motor and Fire claims experience and a stronger contribution from the Travel segment. These factors also supported an improved Combined Ratio, which declined 4.9% YoY. Despite softer investment income, higher total other income and expenses, and challenges from its Thai associate, PAT increased 3.8% YoY, underscoring the Group’s ability to deliver growth in a mixed operating environment.
For 9M25, Net Insurance Service Result more than doubled YoY, supported by a 10.9% reduction in Combined Ratio. PAT also recorded over 100% YoY growth, attributed to lower total other income and expenses, in line with the Group’s cost optimisation initiatives.
Revenue Growth – Travel Segment and Income Diversification
“The Group’s profitability were supported by the improvement in Net Claims Incurred (“NCI”) ratio attributed to claims management efficiencies and better cost efficiency which improved 7.2% YoY in 9M25,” said How Kim Lian (“How”), Group Chief Executive Officer of Tune Protect. “Our business was further strengthened by the substantial growth in ancillary income and Technology fee contribution, which quadrupled since 1Q25, generating approximately RM13.18 million. This reinforces our strategy to diversify revenue streams beyond insurance.”
“Although insurance revenue for 3Q25 declined 12.7% YoY in line with the Group’s earlier decision to shift towards higher-quality and more profitable business segments, we are still confident that we will regain revenue growth in the long-term in tandem with the uptrend in the Travel segment and diversification of our revenue streams,” How added.
Strengthening Investment Income Through Tactical Asset Allocation
The Group’s total investment income in 3Q25 declined slightly by 3.8% YoY, reflecting market profit-taking during the quarter. Despite this temporary dip, investment performance is expected to remain stable in 4Q25, supported by proactive portfolio management.
As of 30 September 2025, Tune Protect’s investment portfolio stood at RM731.7 million, comprising 91% in unit trust funds and 9% in deposits. Within unit trust funds, 95% were allocated to fixed income funds and 5% to money market funds.
To enhance portfolio yield, the Group implemented a Tactical Asset Allocation (TAA) strategy, shifting unit trust investments from low-risk asset funds into corporate bond funds. This approach positions the portfolio to benefit from widening credit spreads and anticipated policy rate easing, reinforcing Tune Protect’s commitment to optimising returns while maintaining a prudent risk profile.
Strategic Pillars Driving Sustainable Growth
Tune Protect’s growth strategy is anchored on three key pillars and have delivered tangible progress in 9M25:
- In-Country General Insurance Business – Focused on profitability and operational efficiency, recording a 4.6 percentage point reduction in Motor loss ratio through enhanced claims management, and partnership with Shopee (via PolicyStreet) delivered >100% topline growth
- Strategic Regional Business – Expanded travel insurance footprint by onboarding 380 travel agents in Malaysia, extending the Universal Travel Insurance – Inbound Plan to 20 Asian markets, and introducing Fly-Thru misconnection benefits for AirAsia travelers.
- New Income Streams Beyond Insurance – Launched innovative offerings such as travel eSIM campaigns and premium concierge services, including airport transfers and lounge access, creating incremental earnings and enhancing customer engagement.
Positive Outlook Supported by Core Growth Drivers
The Group anticipates a positive trajectory for revenue and profit growth, supported by airline expansion plans and rising travel demand across Asia. Air travel in the region is projected to grow at a five-year CAGR of 8–11%, and Tune Protect is well-positioned to capture this trend through strategic alliances with AirAsia and AirArabia. These partnerships, backed by a combined order book of over 700 aircraft, present significant opportunities for insurance uptake and ancillary bundles.
Beyond insurance, ancillary income is expected to maintain strong momentum, with deeper integration into the Travel ecosystem and offerings such as eSIM, baggage solutions, and premium travel services.
“Tune Protect is well-positioned to meet rising demand for travel and insurance solutions, and we expect a strong 4Q25 aligned with peak travel season trends. Looking ahead, as we prepare for Visit Malaysia Year 2026, our focus is on elevating the arrival experience and making protection and convenience seamlessly accessible to travellers,” How concluded.
