{"id":8587,"date":"2023-05-25T11:00:26","date_gmt":"2023-05-25T03:00:26","guid":{"rendered":"https:\/\/www.tuneprotect.com\/my\/?p=8587"},"modified":"2024-07-17T15:59:20","modified_gmt":"2024-07-17T07:59:20","slug":"tune-protect-1q23-recorded-back-to-back-profitable-quarters-starting-off-the-year-with-sustained-momentum","status":"publish","type":"post","link":"https:\/\/www.tuneprotect.com\/my\/2023\/05\/tune-protect-1q23-recorded-back-to-back-profitable-quarters-starting-off-the-year-with-sustained-momentum\/","title":{"rendered":"Tune Protect 1Q23: Recorded back-to-back profitable quarters, starting off the year with sustained momentum"},"content":{"rendered":"<p><strong>Growth of close to 30% in NEP and more than 80% in customer count<\/strong><\/p>\n<p><strong>Highlights:<\/strong><\/p>\n<ul>\n<li><strong>Strong start in 1Q23 with second consecutive profitable quarter<\/strong><\/li>\n<li><strong>AirAsia travel segment recorded 175% growth<\/strong><\/li>\n<li><strong>Steadier investment yield expected moving forward<\/strong><\/li>\n<li><strong>NEP growth outpaced expenses for 4 consecutive quarters<\/strong><\/li>\n<\/ul>\n<p>\n<strong>KUALA LUMPUR, 25 May 2023<\/strong> &#8211; Tune Protect Group Berhad (\u201cTune Protect or \u201cGroup\u201d; TUNEPRO, 5230) started its financial year commendably in the first quarter of 2023 (\u201c1Q23\u201d) by posting its second straight profitable quarter. <\/p>\n<p>The Group recorded growth in Net Earned Premium (\u201cNEP\u201d) by 29.9% year-on-year (\u201cYoY\u201d) in 1Q23 to RM81.2 million, although Net Written Premium (\u201cNWP\u201d) dropped by 7.3% to 76.3 million during the same period. The Group observed growth in its preferred business segments; AirAsia Travel, Motor and Health, which contributed to the Group\u2019s topline.  The Group recorded Profit After Tax (\u201cPAT\u201d) of RM3.4 million, up by more than 100% YoY.<\/p>\n<p><strong>Sustaining momentum<\/strong><br \/>\n\u201cWe have sustained our momentum, as shown by the Group\u2019s second straight profitable quarter in 1Q23. The Group\u2019s net investment income rebounded by more than 100% to RM10.2 million in 1Q23, while Tune Protect Thailand\u2019s (\u201cTPT\u201d) Covid-19 claims have also trailed off,\u201d said <strong>Rohit Nambiar (\u201cRohit\u201d), Tune Protect Group\u2019s Chief Executive Officer<\/strong>.<\/p>\n<p><img src=\"https:\/\/s3-ap-southeast-1.amazonaws.com\/tuneprotect.com\/tpr\/static-tuneprotect\/images\/Group-Performance-1Q23-overview.png\" alt=\"\"><br \/>\n<small><br \/>\nNotes:<\/p>\n<ol>\n<li>NEP minus net commission expenses, net claims incurred, facilitator fees and royalty<\/li>\n<li>Aggregate of investment income, realised gains and losses &#038; fair value gains and losses. <\/li>\n<li>Share of results of an associate (TPT) and a joint venture company (TP EMEIA). <\/li>\n<\/ol>\n<p><\/small><\/p>\n<p><strong>Less volatile investment returns<\/strong><br \/>\nIn terms of its investments, the Group is expecting a steadier investment yield with less volatility. In 1Q23, Tune Protect Malaysia (\u201cTPM\u201d) completed the full switch into money market fund from fixed income funds.<\/p>\n<p>\u201cWith the bulk of our portfolio invested in money market funds, our portfolio will not only benefit from the recent 25 basis points (\u201cbps\u201d) Overnight Policy Rate (\u201cOPR\u201d) hike by Bank Negara Malaysia, but moving forward, volatility in investment returns will also be reduced,\u201d said Rohit.<\/p>\n<p><strong>Improved retention and efficiency <\/strong><br \/>\nThe Group is confident of meeting its target of 70% retention in all of its Lines of Business (\u201cLOB\u201d) and becoming a more efficient organisation on a ratio basis.<br \/>\nThe overall Lifestyle pillar NWP was lower, however, AirAsia Travel, Health and Motor partly mitigated the discontinued Perlindungan Tenang scheme while in the Small Medium Enterprise (\u201cSME\u201d) business segment, there was higher ceding of premiums from a new account which was a part of the Group\u2019s risk management. In the Commercial segment, the Group fully exited a low retention large corporate account at the end of 2022.<\/p>\n<p>\u201cOverall, the Lifestyle segment was lower due to the discontinued Perlindungan Tenang scheme.  However, the impact was cushioned by the growth in AirAsia Travel by 175% and Motor by 18% YoY respectively. Another positive was in 1Q23, travel premiums was at 92% of pre-Covid-19 level.\u201d <\/p>\n<p>\u201cNEP growth has outpaced expenses for 4 consecutive quarters and the Group\u2019s Management\u2019s Expenses (ME) ratio continues to improve. There was lower commission income received with the Group\u2019s progressive exit from the Commercial segment, in addition to higher claims incurred in the Motor segment,\u201d said Rohit.<\/p>\n<p><strong>Focus on strategic partnerships<\/strong><br \/>\nRohit stressed the importance of the Group\u2019s strategic partnerships in realising its long term goals and objectives.<\/p>\n<p>\u201cThe right partnerships are critical to our growth. We are very focused on sales activation and growing the business with our current partners. Our digital partners increased from 42 in 1Q22 to 76 in 1Q23. We are partnering with Senang for our first personal cyber crime insurance Tune CyberSecure, protection against electronic fund transfer fraud, online retail fraud and identity theft. Customers can be insured up to RM10,000. We also have a new channel partner through the AEON-bolttech program featuring Accidental Damage and Liquid Damage (ADLD), cracked screen and theft for devices as well as extended warranty for home appliances,\u201d said Rohit.<\/p>\n<p>The Group has other on-going Business-to-Consumer (\u201cB2C\u201d) campaigns such as earning double reward points for AirAsia rewards when the customer buys the Group\u2019s policies, Bike Easy &#038; Travel Easy with BigPay and Bike Easy &#038; Travel Easy with Tune Talk.<\/p>\n<p><strong>Expanding mobile presence<\/strong><\/p>\n<p>The Group is also making major strides in becoming a mobile first company. To realise the Group\u2019s ambitions in this space, there are more mobile launches planned in 2023 and 2024. The latest exciting mobile campaigns include the Travel Easy \u201cExtravelganza\u201d campaign and Motor Easy \u201cSo Early Ah\u201d campaign.<\/p>\n<p>Other mobile features planned to enhance the customer\u2019s experience include first loss notification, tow truck tracker, preferred workshop options, telematic and hyper-personalisation\/ customisation,<br \/>\nauto renewal notice, artificial intelligence (\u201cAI\u201d) claims assessment and self-service portal.<\/p>\n<p><strong>Boosting Customer NPS leadership <\/strong><br \/>\nThe Group is committed to becoming a Customer Net Promoter Score (\u201cNPS\u201d) leader, as evident by its Customer NPS score of +39% as at December 2022, closing in to the global industry standards of +42%. Unique active customer count grew more than 80% from 1.0 million to 1.82 million YoY. <\/p>\n<p>To strengthen its position in Customer NPS, the Group has introduced the On-The-Spot Claims Assessment Scheme for Fire products and claims below RM5,000. Claims submissions are paperless and payment will be raised within 3 working days from the date of receipt of the required claims documents. This will improve the turnaround time of claims assessments by 95% from 21 days to just 1 day.<\/p>\n<p>The Group has also launched a cloud-based new contact centre platform for more efficient and effective call management to  improve customer experience.  There is also a renewal notice for B2C customers and renewals can be conducted directly via the Group\u2019s website.<\/p>\n<p><img src=\"https:\/\/s3-ap-southeast-1.amazonaws.com\/tuneprotect.com\/tpr\/static-tuneprotect\/images\/Customer-tracking-metrics-1Q23.png\" alt=\"\"><br \/>\n<small><br \/>\nNotes:<\/p>\n<ol>\n<li>Inclusive of TPR, TP EMEIA, TPM and TPT.<\/li>\n<li>1Q22 to 3Q22 metrics were revised to account for the adjustment in cut-off date.<\/li>\n<li>Number of active policy \/ unique active customer<\/li>\n<li>Number of product by nature \/ unique active customer<\/li>\n<li>Duration of active customer since the inception of the first policy<\/li>\n<li>Total GWP \/ active customer base <\/li>\n<\/ol>\n<p><\/small><\/p>\n<p><strong>Introducing ESG Insights<\/strong><br \/>\nAs a constituent in the FTSE4Good Bursa Malaysia Index, the Group has introduced ESG Insights, a data platform which simplifies ESG data from various sources into a single readable data set made available on the Group\u2019s website. This is a one-stop centre to easily extract specific and up to date ESG information using a range of selection criteria.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Growth of close to 30% in NEP and more than 80% in customer count Highlights: Strong start in 1Q23 with second consecutive profitable quarter AirAsia travel segment recorded 175% growth Steadier investment yield expected moving forward NEP growth outpaced expenses for 4 consecutive quarters KUALA LUMPUR, 25 May 2023 &#8211; Tune Protect Group Berhad (\u201cTune [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts\/8587"}],"collection":[{"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/comments?post=8587"}],"version-history":[{"count":5,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts\/8587\/revisions"}],"predecessor-version":[{"id":9048,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts\/8587\/revisions\/9048"}],"wp:attachment":[{"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/media?parent=8587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/categories?post=8587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/tags?post=8587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}