MNRB Holdings Berhad (MNRB), has reported its financial results for the first quarter ending June 30th, 2025 (Q1 FY’26), including a best opening quarter performance since inception with profit after tax (PAT) of RM168.4 million (USD 39.9m), up 82.7% from RM92.2 million (USD 21.9m) in Q1 FY’25, largely driven by Malaysian Reinsurance Berhad (Malaysian Re).
Malaysian Re, MNRB’s reinsurance/retakaful arm, delivered its highest-ever first-quarter profit after tax of RM112.1 million (USD 26.6m), a 30.3% increase from RM86.1 million (USD 20.4m) in Q1 FY’25.
This was primarily driven by a substantial uplift in the insurance/takaful service result, which rose to RM158.6 million (USD 37.6m) from RM42.5 million (USD 10.1m) in Q1 FY’25, due to a notable improvement in the core business claims ratio.
MNRB stated, “Although the worldwide catastrophic events are at their highest in the last 10 years, proper risk diversification coupled with strong underwriting discipline has elevated Malaysian Re’s performance.”
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Additionally, Malaysian Re’s insurance/takaful revenue grew 10.1% to RM539.1 million (USD 127.8m) from RM489.6 million (USD 116m) in the corresponding period, driven by family retakaful portfolios, MGA, and specialty lines of business.
MNRB’s insurance/takaful revenue rose 15.8% year on year to RM866.3 million (USD 205.3m) in Q1 FY’26 from RM748.4 million (USD 177.4m) in Q1 FY’25, led by the strong performance of its reinsurance and general takaful businesses, which recorded growth of over 40%.
The Group investment result, reported at RM165 million (USD 39.1m) in Q1 FY’26, increased by 23.5% from RM133.6 million (USD 31.7m) last year, contributing positively to the Group’s overall earnings. The earnings were backed by higher fair value gains from favourable market conditions in the bond and equity portfolios, explained MNRB.
Finally, MNRB’s strong Q1 FY’26 performance contributed to a higher annualised return on equity (ROE) of 17.8%, compared to 11.1% in Q1 FY’25, driven by enhanced capital productivity and shareholders’ value creation.
For the Group’s future outlook, MNRB explained that balancing business portfolios will remain key. The retakaful/reinsurance business will remain steadfast in pursuing geographic and risk diversification in profitable markets. While its general takaful business continues to expand its presence in the motor takaful segment, and greater focus will also be placed on accelerating growth in the non-motor segment.
Simultaneously, the family takaful business will continue to focus on growing its agency force and enhancing agent productivity through targeted development initiatives and retention strategies.
Dato’ Rudy Rodzila Che Lamin, Interim President & Group Chief Executive Officer, MNRB, commented, “We began FY2026 with a strong performance, underpinned by the strength of our reinsurance and takaful businesses. A 223.5% increase was recorded in the Group’s insurance/takaful service result, driven by strong growth in the insurance/takaful revenue. The Combined Ratio was another key financial highlight, continuing its positive trajectory. It improved to 73% from 90.1%, driven by lower net incurred claims and attributable expenses.
“The improvement reflects more favourable claims experience, particularly within the reinsurance segment, indicating enhanced underwriting discipline and risk diversification. These results affirm our transformation efforts and focus on long-term value accretion. We remain committed to executing key initiatives aimed at strengthening and expanding our market presence and distribution channels, enhancing operational efficiency and advancing talent development.”
Dato’ Rudy Rodzila stated on the outlook, “As market dynamics continue to evolve, emphasis will be placed on strengthening our core business segments through optimised risk diversifications, operational efficiency, strategic partnerships and product innovations.
“At the same time, we will maintain a disciplined approach to prudent asset management, focusing on capital preservation to effectively navigate short-term market volatility. With solid fundamentals and a resilient business model, MNRB is poised to strengthen its position in this ever-challenging industry.”
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