KUALA LUMPUR: Reinsurance and takaful operator MNRB Holdings Bhd slipped into the red in the third quarter ended December of financial year 2015 (3QFY15) after posting a net loss of RM20.09 million or 9.4 sen per share, compared to  a net profit of RM13.98 million or 6.6 sen per share a year ago.

MNRB — in which Permodalan Nasional Bhd, via Skim Amanah Saham Bumiputera, has a 46.37% stake — blamed the weaker performance on a few large claims from its reinsurance and retakaful subsidiaries, which included claims related to the recent floods in Kelantan, Terengganu and Pahang.

“The group recorded a net loss mainly due to the provision for Peninsular Malaysia flood losses recognised during the current quarter, which affected the results of the company’s reinsurance and retakaful subsidiaries,” MNRB said in a filing with Bursa Malaysia yesterday.

Revenue in 3QFY15 marginally dipped 1% to RM550.97 million from RM556.57 million a year ago.

For the cumulative nine months ended December 2014, MNRB saw its new profit slump 37.6% to RM50.67 million or 23.8 sen per share from RM81.26 million or 38.1 sen per share a year ago; revenue slipped 2% to RM1.76 billion from RM1.79 billion previously.

On a segmental basis, MNRB’s investment holding and reinsurance businesses saw their profits fall 48.6% and 31% respectively.

On the other hand, the profit for its takaful business marched upwards by 7.6%, while the loss in the retakaful business narrowed by 46%.

Going forward, MNRB (fundamental: 0.7; valuation: 3) warned that it may record a lower profit for FY15.

“The group’s profit for the financial year ending March 31, 2015 is not expected to outperform the previous financial year’s results,” MRNB said.

The counter closed unchanged at RM3.90, giving it a market capitalisation of RM831 million.

This article first appeared in The Edge Financial Daily, on February 18, 2015.