Tune Protect fourth quarter earnings down 30%

PETALING JAYA: Tune Protect Group Bhd’s net profit in the fourth quarter ended Dec 31, 2016 (Q4FY16) dropped almost 30% to RM16.54 million from RM23.5 million in the same period last year, due mainly to the decrease in contributions from the general insurance and reinsurance segments.
Revenue was up by 3.5% to RM135.5 million from RM130.92 million in the previous corresponding quarter.
For the 12 months, Tune Protect’s net profit grew nearly 16% to RM79.98 million, against RM68.97 million a year ago, boosted mainly by its general insurance operations in Malaysia. Revenue increased 7.6% to RM516.62 million from RM480.19 million.
In a filing with the stock exchange, the group said the general reinsurance segment saw a RM5.3 million profit drop in new earned premium in the local market, while the RM7.1 million fall in general insurance segment’s profit was due to higher net claims, allowance for doubtful debts and fixed assets written off, as well as lower realised and fair value gains in investments.
Tune Protect said full-year profit was strengthened by its increased share of profits from the Malaysian Motor Insurance Pool.
On 2017 outlook, the group said it anticipates its digital business will continue to flourish with the increased adoption of purchases through digital channels by consumers.