Tune Protect Group Berhad reported its fourth consecutive quarter of profit, supported by expanding travel insurance operations and lower motor and fire claims costs.
For the April to June 2025 quarter, the insurer reported profit before tax of RM11.7 million and profit after tax of RM9.6 million, both more than double from the same period last year.
While insurance revenue fell 9.3% to RM86.5 million, travel insurance growth helped offset the decline, with gross written premium rising 37.5%.
The combined ratio stood at 94.0%, improving from 105.2% in the prior year.
Group chief executive officer How Kim Lian (pictured) said the consistent results reflected strong contributions from travel and lower claims across other major segments.
“This was the group’s fourth consecutive quarter of profitable growth which can be attributed to the robust travel segment and improved motor and fire claims,” he said.
The motor portfolio showed a 7% year-on-year improvement in its loss ratio. According to the group, the motor business has reached a more balanced portfolio mix and is expected to see growth in selected lines during the second half of 2025.
Across the quarter, the combined ratio improved by 11.2 percentage points, largely due to reduced net incurred claims.
The group also benefited from higher investment income, lower operating expenses, and a positive contribution from its associate in Thailand.
Investment income climbed 64.3% to RM11.5 million in the second quarter, and 18.9% to RM19.5 million for the half year.
As of 30 June, the group’s investment portfolio totalled RM715.6 million, mostly in unit trust funds and deposits.
How said the company shifted part of its unit trust allocation into corporate bonds to capture higher credit spreads.
“The group had executed a Tactical Assets Allocation (“TAA”) by reallocating unit trust investments from the low-risk assets funds to corporate bond funds to take advantage of widening credit spreads compared to government bonds. The new TAA is expected to enhance the overall yield of the group’s investment income, considering the impending Overnight Policy Rate (OPR) cuts,” he said.
The first half of the year also saw expansion in Tune Protect’s distribution network.
The company added seven online travel agents across Southeast Asia, extended its business-to-business operations to five additional countries, and introduced a universal inbound travel insurance plan across 16 Asian markets.
In partnership with AirAsia, the group continued the rollout of its Delay Lounge Pass across most Asian destinations and launched a digital claims portal for several Southeast Asian markets.
Looking ahead, Tune Protect expects growth opportunities in travel, motor, and foreign workers’ insurance.
It plans to build its motor portfolio in East Malaysia and in higher-value private vehicles, while also increasing participation in the foreign workers’ insurance segment, where it currently ranks third.
The group also expects to broaden non-insurance income through ancillary products such as premium lounge access, e-SIM services, and baggage and airport transfer offerings.
How said the strategy remains focused on sustainable profitability.
“The group is focused on strengthening our bottom-line by focusing on strategic shift towards profitable segments and preferred portfolio mix, in addition to continued cost efficiency initiatives supported by a disciplined expense management,” he said.
In the first three months of 2025, the insurer recorded profit after tax of RM7.4 million, compared with a loss of RM3.9 million in the same quarter last year.
The turnaround was attributed to stronger travel insurance sales and improved claims results in motor and fire.
