KUALA LUMPUR (May 19): Tune Ins Holdings Bhd’s net profit fell 14.4% to RM16.5 million in the first quarter ended Mar 31, 2015 (1QFY15), from RM19.2 million a year ago, mainly due to a higher base as a result of a one-off gain on disposal of property of RM4.3 million in 1QFY14.

Tune Ins’ (fundamental: 2.7; valuation: 0.35) revenue came in 2.4% lower at RM111.25 million, from RM113.95 million a year earlier.
 
The insurance provider told Bursa Malaysia today that the lower revenue was due to a decrease of RM4.2 million in gross earned premiums, net off by an increase of RM1.5 million in investment income from collective investment schemes.
 
On prospects ahead, the group said it is “on track” with its growth strategies across its core businesses of general reinsurance and general insurance.
 
It added that travel personal accident take-up rate has been improving, especially with major markets showing dramatic growth.
 
Furthermore, the group has embarked on its acquisition of a 50%+1 share stake in an Indonesian general insurer, pending regulatory approval. The acquisition is expected to be completed in the next three months.
 
Tune Ins' shares ended down 3 sen or 1.6% at RM1.82 today, giving it a market capitalisation of RM1.37 billion.
 
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)