KUALA LUMPUR (Nov 4): MAA Group Bhd swung back into the black in the third quarter ended Sept 30, 2020 (3QFY20) posting a net profit of RM22.76 million from a net loss of RM3.3 million in 3QFY19.

In a bourse filing, the group explained its quarterly net profit was mainly led by its general insurance business which reported a profit before tax of RM9.9 million versus a loss before tax (LBT) of RM192,000 a year ago.

MAA posted earnings per share of 8.35 sen versus a loss per share of 1.21 sen.

The group saw higher earnings across all its segments, reversing the losses seen in its general insurance, investment holdings and other segments in the corresponding quarter last year.

Revenue-wise, the group saw its latest top-line income rise by 24.26% y-o-y to RM59.78 million from RM48.11 million last year.

This was due to higher gross earned premiums by its subsidiary MAA General Assurance Philippines Inc, investment income and other operating revenue from its non-insurance business.

On a quarter-on-quarter (q-o-q) basis, it saw net profit decline to RM22.76 million from RM23.17 million, despite revenue increasing to RM59.78 million from RM50.16 million in the immediate preceding quarter.

Earnings per share dipped from 8.48 sen in 2QFY20 as a result.

The lower net profit was due to higher realised loss of RM10.7 million from the disposal of assets from the RM14.7 million gains seen in 2QFY20, and higher net claims of RM7.6 million from RM4.3 million in 2QFY20.

For the nine months ended Sept 30, 2020 (9MFY20), the group was in the black with a net profit of RM15.43 million from a net loss of RM4.96 million in the corresponding nine months last year, bringing earnings per share to 5.7 sen from a loss per share of 1.81 sen a year ago.

9MFY20 revenue was up by 17.12% at RM164.27 million, from RM140.26 million.

“The Covid-19 pandemic has caused major disruption to the global economies including Malaysia. Businesses worldwide are currently facing a very challenging time and having to manage uncertainties that have arisen resulting from the outbreak of Covid-19.

“As at the date of this announcement, there are on-going proactive measures introduced by each company in the Group. The Group will also continue to improve its management efficiency and intensify cost optimization efforts to ensure business sustainability,” it noted on its prospects.

Shares in MAA finished 5.13% or three sen up at 61.5 sen, valuing it at some RM168.08 million. It saw 51,800 shares traded.