According to the company’s financial results statement, the decline in profit was due to higher management expenses as a result of a one-off provision for impairment for insurance and reinsurance receivables.
For the full year 2020, Tune Protect Group had an after-tax profit of MYR28.2 billion, down 51.4% year-on-year. This was due to reduced travel caused by the COVID-19 pandemic.
The group’s Tune Protect Re (TPR) subsidiary showed improved performance, both in the fourth quarter and the entire year. GWP grew by 8.3% to MYR15.4 million for the full year, and over 100% to MYR2.1 million for the fourth quarter.
These, the company said, were driven by the rebound of the travel industry and increased awareness of travel insurance in the Middle East. There was also increased take-up of COVID-19 Plus Extension products, which were launched in the second half of 2020, for business clients.
In the group’s home region of Southeast Asia, Tune Protect Thailand led the recovery, with GWP up 101.4% quarter-on-quarter. The Malaysian business remained hard-hit by the pandemic, with GWP of 55.9 million, down 41.6% year-on-year.
The pandemic has led the group to speed up its diversification efforts in the health, lifestyle and SME businesses, said the group’s chief executive.
“Despite the pandemic odds stacked against us and the rest of the industry, Tune Protect foresees a promising future from ASEAN and the Middle East in the health, lifestyle and SME pillars,” said Rohit Nambiar, Tune Protect Group CEO. “Furthermore, as already seen in 1Q 2021, we look forward to more related digital and affinity partnerships plans coming to fruition in 2021 to push us forward to become the lifestyle insurer that everyone loves in ASEAN.”