MNRB takaful business to drive future growth
KUALA LUMPUR: MNRB Holdings Bhd, which has 60% market share of the local reinsurance business, expects its takaful and retakaful businesses to drive revenue growth in the coming years.
Chairman Sharkawi Alis said for the financial year ended March 31 (FY08), wholly owned unit Takaful Ikhlas Sdn Bhd’s gross contribution improved significantly to RM427.5mil from RM223.9mil previously, surppassing the company’s initial target of RM320mil.
“Takaful Ikhlas’ net profit also rose to RM11.4mil from RM1mil previously,” he told reporters after the company AGM yesterday.
MNRB president and group chief executive officer Annuar Mohd Hassan said the company believed the takaful and retakaful businesses had good growth potential.
“We see these two businesses contributing significantly to revenue over time,” he said, adding that the company had successfully launched MNRB Retakaful Bhd, which had progressed well, posting a profit after tax and zakat of RM1.9mil in its first eight months of operation.
Annuar said the company was also looking to expand its overseas reinsurance business, which currently contributed about 18% of its revenue.
“We are targeting a 25% revenue contribution from our overseas reinsurrance business by March 2009,” he said, adding that another subsidiary Malaysian Re (Dubai) Ltd was officially launched at the Dubai International Financial Centre in United Arab Emirates.
For FY08, MNRB posted an impressive 31.6% jump in net profit to RM170.44mil, compared with RM129.47milin FY07.
Revenue rose 17% to RM978.6mil from RM834.1mil previously.
“We posted record profit this time,” Annuar said, adding that the achievement might be difficult to emulate for FY09 because of the gloomy economic outlook.
