KUALA LUMPUR (Nov 15): Tune Protect Group Bhd's net profit fell 28.3% to RM9.13 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM12.73 million a year ago, on lower net earned premiums of RM9.2 million, increased management expenses of RM7.6 million mainly due to higher employee, marketing and other administrative costs, and a decrease in net claims incurred of RM10.1 million.

As a result, earnings per share came in lower at 1.22 sen for 3QFY18 compared with 1.69 sen for 3QFY17.

Quarterly operating revenue rose slightly to RM141.49 million from RM140.12 million in 3QFY17.

In a statement today, Tune Protect said gross written premiums rose 8.7% year-on-year to RM122.2 million in 3QFY18, contributed by the digital global travel and Malaysia general insurance businesses.

For the cumulative nine months (9MFY18), the group's net profit rose by a marginal 2.2% to RM38.52 million from RM37.68 million a year ago, while operating revenue increased 5.4% to RM425.7 million from RM404.08 million in 9MFY17.

On prospects, Tune Protect said it expects a more challenging fourth quarter.

"Besides the further impact from debt provisioning under the expected credit loss model, the group will also begin to unfold its cost rationalisation plan and roll out its strategies under its business transformation plan.

"As such, the remaining months ahead are expected to be a period of consolidation in resources and business approach, with lower expectations in the overall profit prospects for the full year," it added.

"However, these strategies are envisaged to give rise to more sustainability and growth in the mid to long term after the challenging initial period," it noted.

Tune Protect shares closed up 3 sen or 4.29% at 73 sen today, with 1.65 million shares done, valuing it at RM548.79 million.