Tune Protect Group Berhad announced a significant turnaround in its first-quarter 2025 performance, reporting a profit after tax (PAT) of RM7.4 million compared to a loss of RM3.9 million in the same period last year.
The improvement was primarily driven by better claims performance in its motor and fire insurance lines, as well as continued expansion in travel insurance operations. The group’s net insurance service result improved to RM5.8 million from a loss of RM9.3 million in Q1 2024, thanks to a 30.6% reduction in net incurred claims and attributable expenses. This led to a more favorable combined ratio of 93.4%.
“The improved combined ratio was due to more favorable claims experience for motor and fire segments,” said Tune Protect CEO How Kim Lian. The company faced challenges from its associate in Thailand due to earthquake-related claims in Myanmar that caused aftershocks in Thailand during Q1 2025.
Financial Highlights
While total insurance revenue declined 6.5% year-over-year to RM88.5 million, the travel segment saw a 22% revenue increase. This growth was supported by expansion into new markets including Zambia, Sri Lanka, Pakistan, and Kenya, as well as partnerships with digital platforms like AirPaz and Gettgo.
Motor Insurance Performance
The motor insurance segment showed continued improvement with a five percentage point reduction in loss ratio year-over-year. This was attributed to stronger claims management practices. Average premiums for private car policies rose by 6%, and the proportion of higher-value policies increased slightly. The motorcycle segment grew, accounting for 18.4% of the motor portfolio in Q1 2025, up from 17.6% in Q4 2024.
Investment Income
Investment income decreased by 14.2% to RM8.1 million due to global market volatility amid trade policy uncertainties. However, the company completed a portfolio rebalancing during the quarter, shifting towards low-risk investments such as unit trusts and government-backed securities.
Strategic Focus
Tune Protect is prioritizing three core strategies in its travel business:
- Extending market presence
- Establishing a travel insurance center of excellence
- Enhancing customer experience beyond insurance coverage
Planned initiatives include launching new products like Baggage Shield and expanding into additional markets. In the Philippines, the company will introduce its Delay Lounge Pass and new features such as Flight Watcher and Travel eSIM.
For the full year 2024, Tune Protect reported a PAT of RM2.7 million, recovering from a loss in the previous year. The Q4 2024 results alone contributed RM9.5 million to PAT, demonstrating strong quarterly performance.
