PETALING JAYA (Nov 17): Tune Ins Holdings Bhd recorded a marginal drop in net profit by 3.9% to RM16.17 million for the third quarter ended Sept 30 (3Q14) compared with RM16.82 million in the previous corresponding quarter.

In a filing of its 3Q14 results with Bursa Malaysia, Tune Ins, however, recorded an increase of 10.83% on its quarterly revenue to RM109.51 million from RM98.81 million the previous corresponding quarter.

The higher revenue was attributed to an increase of RM10.4 million in gross earned premiums (GEP).

The company also noted an increase of RM11.3million in GEP of general insurance in 3Q14 ,mainly contributed by an increase in GEP of motor, fire, and marine class of businesses.

However, it noted that the GEP of general reinsurance segment fell from RM26.1 million in the third quarter of financial year 2013 (3Q13) to RM25.6 million in 3Q14, mainly due to slowdown in Thailand, China and Indonesia market, mitigated by growth in Middle East market.

“The number of policies earned has decreased by 11% over that of 2013,” the report stated.  

The company attributed the decrease in profit before tax to a decrease in profit before taxation of general insurance by RM3.9 million in 3Q14, mainly due to higher net claims in the current quarter, which was mitigated by growth in net earned premiums.

It also noted a decrease of RM1.5 million in profit before tax of general reinsurance segment in 3Q14 as a result of the above mentioned drop in GEP and higher commission incurred mainly for Middle East market.

Tune Ins noted that both decreases were mitigated by share of profits from an associate inThailand of RM1.9 million.

Despite this, Tune Ins year-to-date (YTD) profit increased by 5.83% to RM49.76 million this year from RM47.02 million in the previous corresponding period.

The company’s YTD profit also increased by 15.13% to RM324.97 million this year from RM282.26 million in the previous corresponding period.

The company noted that it would continue to pursue its strategies outlined at the time of its initial public offering and leverage on the growth of Air Asia while pursuing other travel related partnerships.

On a separate filing to Bursa, has terminated its memorandum of understanding (MoU) with Dubai-based company Al Hai LLC (Al Hai).

Tune Ins noted that as definitive agreements have not been signed, both companies have mutually agreed to terminate the MoU and not to proceed with any agreements.

No reasons for the termination of the MoU were provided.

On Aug 6, Tune Ins announced that it has entered into a MoU with Al Hai to explore and create a joint venture company to conduct insurance-related business.

Tune Ins had reportedly said the MoU was intended to develop, offer insurance products and create partnerships with strategic partners to reinforce Al Hai’s dominance in the aviation business in the United Arab Emirates.