{"id":9546,"date":"2024-08-28T10:58:29","date_gmt":"2024-08-28T02:58:29","guid":{"rendered":"https:\/\/www.tuneprotect.com\/my\/?p=9546"},"modified":"2024-09-03T11:01:21","modified_gmt":"2024-09-03T03:01:21","slug":"tune-protect-driving-future-performance-with-a-focus-on-travel","status":"publish","type":"post","link":"https:\/\/www.tuneprotect.com\/my\/2024\/08\/tune-protect-driving-future-performance-with-a-focus-on-travel\/","title":{"rendered":"Tune Protect driving future performance with a focus on Travel"},"content":{"rendered":"<ul>\r\n<li><strong>One-off impairments and fire claims affected Tune Protect 2Q24 financial performance<\/strong><\/li>\r\n<li><strong>Excluding impairments and fire claims, marginal PBT of RM1.5 million<\/strong><\/li>\r\n<\/ul>\r\n<br><br>\r\n<strong>KUALA LUMPUR, 28 August 2024 \u2013 Tune Protect Group Berhad\u2019s<\/strong> (\u201cTune Protect\u201d or \u201cGroup\u201d; TUNEPRO, 5230) financial results for the second quarter of the financial year 2024 (\u201c2Q24\u201d) were affected by one-off impairments from the Group\u2019s subsidiary Tune Protect Ventures (\u201cTPV\u201d) and its associate company, Tune Protect Thailand (\u201cTPT\u201d), and abnormally high fire losses. Insurance revenue also declined 6.7% year-on-year (\u201cYoY\u201d) which led to a Loss Before Tax (\u201cLBT\u201d) of RM10.3 million. \r\n<br><br>\r\n<strong>How Kim Lian (\u201cHow\u201d) Tune Protect Group\u2019s Chief Executive Officer<\/strong> elaborated further on the key factors affecting the Group\u2019s 2Q24 financial performance.\r\n<br><br>\r\n<strong>Normalised numbers, excluding one-off impairments and claims <\/strong>\r\n<br>\r\n\u201cThe Group\u2019s profitability was impacted by the one-off impairments from TPV of RM3.0 million, as well TPT of RM4.9 million. Our net claims incurred was also higher as we experienced two abnormally large fire losses in 2Q24, in contrary to 2Q23 where we had benefitted from the better than anticipated claims experience from the Tenang Personal Acccident  (\u201cTenang PA\u201d) scheme, which had since been discontinued,\u201d said How.\r\n<br><br>\r\nConsequently, the Group\u2019s combined ratio increased 9.9% YoY due to the higher net incurred claims and attributable expenses. Increased acquisition cost ratio also contributed to the increase in the Group\u2019s combined ratio, partially offset by a lower reinsurance ratio. \r\n<br><br>\r\n\u201cThe lower reinsurance ratio was due to the Group\u2019s gradual exit from the Large Industrial Risk business leading to savings in reinsurance premiums. If we were to remove the anomalies mentioned above from the equation, overall, the Group would have recorded a slight Profit Before Tax (\u201cPBT\u201d) of RM1.5 million,\u201d added How.\r\n\r\n<br><br>\r\n<img src=\"https:\/\/s3-ap-southeast-1.amazonaws.com\/tuneprotect.com\/tpr\/static-tuneprotect\/images\/Group-performance-2Q24-overview.png\" alt=\"\">\r\n<br><br>\r\n<strong>Stable investment performance and strategy<\/strong><br>\r\n\r\nThe Group maintains a conservative investment strategy while looking for opportunities to enhance its overall investment returns. Moving forward, it plans to progressively increase its investment into Low Risk Unit Trust Funds, with underlying investment predominantly in Malaysian Government Securities, Government Investment Issues, and Government Guaranteed Corporate Bonds.  \r\n<br><br>\r\n\u201cThe Group\u2019s investment performance in 1H24 has been stable and we expect more of the same in 2H24. We will be rebalancing some of our money market or fixed deposits into Malaysian government guaranteed bond funds where we are aiming for a reallocation mix of 2% in deposits and 98% in low-risk unit trust funds by the end of 2024,\u201d said How.\r\n<br><br>\r\n<strong>Capitalising on market gaps and opportunities<\/strong><br>\r\n\r\nThe Group is reprioritising its efforts in the Travel segment with various initiatives in key growth areas such as championing the regional travel ecosystem. For example, it is focused on increasing take-up rate (\u201cTUR\u201d) through existing distribution channels, such as AirAsia.\r\n<br><br>\r\n\u201cThrough in-depth analysis on our current Travel business, we acknowledge that more can still be done to address the gaps in the take-up rate for the Group\u2019s airline business such as AirAsia. Now that we\u2019ve seen where the gaps are, we will be actively rolling out various initiatives to increase the take up rate and grow our Travel business further,\u201d said How.  \r\n<br><br>\r\nTo capitalise on various market gaps and opportunities identified by the Group, there are exciting plans to optimise the airline market by seizing new opportunities based on flight durations and meeting the demands of customers with new products based on certain behaviours and lifestyles.\r\n<br><br>\r\nFor medium haul flights, there are opportunities to reprice bundled products to be more competitive by offering better product benefits. For international short haul flights, the Group is benchmarking the affordability of insurance relative to air tickets and premiums to airfare ratio. It is conducting some experiments to increase the TUR by adjusting prices to match affordability.\r\n<br><br>\r\n\u201cWe are also actively looking at addressing market needs with unique new products. For example, for budget conscious non-tourists we plan to offer gadget protection at low premiums on top of our travel insurance. For event goers and concert goers, we plan to offer event protection at affordable premiums. For affluent travellers, we plan to offer cancellation insurance,\u201d explained How.\r\n\r\n<br><br>\r\nIn addition, the Group is targeting activation of airline indirect channels such as offline and online travel agents by bundling travel with tour packages, enhancement of the Group\u2019s products at the same pricing and offering agents higher margins as part of the incentive scheme.\r\n<br><br>\r\n\u201cWe are focused on both the offline and online travel agency channels within our existing exclusive distribution partners. This will allow us to penetrate deeper into the travel ecosystem by targeting regional players in areas such as travel agencies, hotel chain, cruises and event organisers. To achieve our objectives, we will roll out global innovative travel products to maintain our market leading position and consistent customer experience. We are expecting claims ratio to taper with the growing Travel mix in our portfolio,\u201d How continued.\r\n<br><br>\r\n\r\n<strong>Outlook<\/strong><br>\r\n\r\nWith the travel and tourism sector showing robust resurgence to pre-pandemic levels of 2019, as well as the Group&#8217;s ongoing efforts in leveraging the Travel ecosystem in the region, the Group is optimistic that the travel insurance products will continue to grow positively in the coming quarters.\r\n<br><br>\r\n\u201cThe Group has reviewed its portfolio and will focus on the more profitable segments of the business while maintaining cost discipline to ensure favourable underwriting results in upcoming quarters. We remain cautiously optimistic that our business strategies and capital strength will continue to fuel growth for the Group over the medium to longer term,\u201d How concluded.  \r\n\r\n","protected":false},"excerpt":{"rendered":"One-off impairments and fire claims affected Tune Protect 2Q24 financial performance Excluding impairments and fire claims, marginal PBT of RM1.5 million KUALA LUMPUR, 28 August 2024 \u2013 Tune Protect Group Berhad\u2019s (\u201cTune Protect\u201d or \u201cGroup\u201d; TUNEPRO, 5230) financial results for the second quarter of the financial year 2024 (\u201c2Q24\u201d) were affected by one-off impairments from [&hellip;]","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\/9546"}],"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=9546"}],"version-history":[{"count":1,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts\/9546\/revisions"}],"predecessor-version":[{"id":9548,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/posts\/9546\/revisions\/9548"}],"wp:attachment":[{"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/media?parent=9546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/categories?post=9546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tuneprotect.com\/my\/wp-api\/wp\/v2\/tags?post=9546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}