Another quarter, another look into the financial heartbeat of Malaysia’s financial sector. Today, we’re diving deep into MNRB Holdings Berhad’s (MNRB) unaudited quarterly report for the financial year ended 31 March 2025. This report offers a comprehensive snapshot of the Group’s performance, revealing a mixed bag of results with overall revenue growth for the full year, but a notable decline in profit for both the latest quarter and the cumulative period.
Despite facing market challenges, MNRB continues to demonstrate resilience and strategic adaptability. One of the report’s highlights includes an increase in net assets per share and the announcement of a final single-tier dividend of 5.0 sen per ordinary share, along with a special dividend of 5.0 sen per ordinary share for the financial year ended 31 March 2024, reflecting the Group’s commitment to shareholder returns. Let’s explore the numbers and what they mean for MNRB’s journey ahead.
Decoding MNRB’s Financial Performance
MNRB’s latest financial results present a nuanced picture. While the Group saw an increase in overall revenue for the full financial year, the latest quarter witnessed a contraction in both revenue and profit. Understanding the underlying drivers is key to appreciating MNRB’s current standing.
Quarterly Performance: A Closer Look
For the three months ended 31 March 2025, MNRB reported a decrease in total revenue and a significant dip in profitability compared to the same period last year. This was primarily attributed to lower insurance/takaful service results following a more refined claims reserving review practice, fair value losses on equity investments, and a lower share of results from associates.
Current Quarter (31 March 2025)
- Total Revenue: RM 921.9 million
- Profit Before Zakat and Taxation (PBT): RM 101.8 million
- Net Profit for the Year Attributable to Equity Holders: RM 93.399 million
- Basic Earnings Per Share: 11.93 sen
Previous Year’s Corresponding Quarter (31 March 2024)
- Total Revenue: RM 1,038.7 million
- Profit Before Zakat and Taxation (PBT): RM 272.5 million
- Net Profit for the Year Attributable to Equity Holders: RM 237.823 million
- Basic Earnings Per Share: 30.37 sen
The total revenue for the current quarter decreased by 11.24%, from RM 1,038.7 million to RM 921.9 million. More significantly, the Profit Before Zakat and Taxation (PBT) saw a substantial decline of 62.64%, dropping from RM 272.5 million to RM 101.8 million. Similarly, net profit attributable to equity holders decreased by 60.73% to RM 93.399 million, and basic earnings per share fell by 60.71% to 11.93 sen. These declines were partially mitigated by lower net insurance financial results due to foreign exchange gains on claims liabilities.
Full Financial Year Performance: A Mixed Bag
Looking at the cumulative twelve months ended 31 March 2025, MNRB demonstrated resilience in revenue growth but faced headwinds in profitability.
Full Financial Year (31 March 2025)
- Total Revenue: RM 3,634.6 million
- Profit Before Zakat and Taxation (PBT): RM 454.3 million
- Net Profit for the Year Attributable to Equity Holders: RM 394.203 million
- Basic Earnings Per Share: 50.34 sen
Previous Full Financial Year (31 March 2024)
- Total Revenue: RM 3,512.8 million
- Profit Before Zakat and Taxation (PBT): RM 505.8 million
- Net Profit for the Year Attributable to Equity Holders: RM 433.539 million
- Basic Earnings Per Share: 55.36 sen
Total revenue for the year increased by 3.47% to RM 3,634.6 million, driven by growth in insurance/takaful revenue from the reinsurance and general takaful businesses, alongside improved investment income. However, PBT for the full year decreased by 10.18% to RM 454.3 million, and net profit attributable to equity holders declined by 9.07% to RM 394.203 million. This was mainly due to lower insurance service results, a reduced share of results from associates, and lower investment results primarily from equity fair value gains. The negative impact was softened by favorable net insurance/takaful financial results, again due to foreign exchange gains on claims liabilities.
Segmental Performance: Diverse Contributions
MNRB operates across five key segments: Reinsurance, Retakaful, General Takaful, Family Takaful, and Investment Holding & Others. Each segment contributed uniquely to the Group’s overall performance:
| Segment | PBT FY2025 (RM’000) | PBT FY2024 (RM’000) | Change (RM’000) | Change (%) | Key Driver for Change |
|---|---|---|---|---|---|
| Reinsurance | 335,577 | 422,453 | (86,876) | -20.57% | Lower net fair value losses on investments offset by improved insurance service results. |
| Retakaful | 17,331 | 2,062 | 15,269 | 740.59% | Predominantly due to the reversal of impairment of Qard in the general takaful portfolio. |
| General Takaful | 85,705 | 82,428 | 3,277 | 3.98% | Higher takaful revenue, partially offset by increased acquisition costs and management expenses. |
| Family Takaful | 8,579 | 18,518 | (9,939) | -53.67% | Lower insurance service results attributed by higher claims incurred, offset by higher realised gains on investments. |
The **Retakaful** segment notably improved its PBT by over 740% year-over-year, mainly due to the reversal of impairment of Qard in the general takaful portfolio. Meanwhile, the **Reinsurance** and **Family Takaful** segments experienced declines in PBT, driven by investment performance and higher claims, respectively. The **General Takaful** segment showed modest PBT growth, supported by increased takaful revenue.
Financial Health: A Solid Foundation
MNRB’s balance sheet as at 31 March 2025 indicates a strong financial position, with growth in total assets and equity.
As at 31 March 2025
- Total Assets: RM 13,394.239 million
- Total Liabilities: RM 9,953.373 million
- Total Equity: RM 3,440.866 million
- Net Assets Per Share: RM 4.39
As at 31 March 2024
- Total Assets: RM 12,572.633 million
- Total Liabilities: RM 9,449.001 million
- Total Equity: RM 3,123.632 million
- Net Assets Per Share: RM 3.99
Total assets grew by 6.53% to RM 13,394.239 million, while total liabilities increased by 5.34% to RM 9,953.373 million. This led to a healthy 10.16% increase in total equity attributable to owners of the Company, reaching RM 3,440.866 million. Consequently, Net Assets per share also saw a commendable increase of 10.03%, from RM 3.99 to RM 4.39. This indicates a growing asset base and strengthening shareholder equity, providing a robust foundation for future operations.
Navigating Risks and Seizing Opportunities
MNRB’s outlook is shaped by both domestic economic resilience and global uncertainties. The Group acknowledges the ongoing external headwinds, such as potential trade disruptions from protectionist policies, which pose residual risks to the economy and the (re)insurance and (re)takaful industry.
Despite these challenges, Malaysia’s takaful industry is poised for continued growth in 2025, buoyed by increasing demand for Shariah-compliant solutions and strong government support. Initiatives like the Financial Sector Blueprint 2022–2026, the Madani Economy Framework, and digital sandbox programs are fostering inclusivity, innovation, and ESG-aligned offerings. MNRB’s takaful arm is actively contributing to this momentum through focused distribution and customer-centric strategies, leveraging digital platforms such as GO Direct and GO Serve to enhance engagement and operational efficiency. These efforts are well-aligned with national objectives to increase takaful penetration, especially among underserved communities, and to fortify Malaysia’s Shariah financial ecosystem.
The reinsurance arm, despite a softening global market and peril-related losses, delivered a commendable performance. While these challenges are expected to persist, MNRB remains optimistic about growth opportunities. The Group’s strategic plan, particularly its bottom-line driven portfolio diversification, is anticipated to bolster the reinsurance arm’s contribution. Furthermore, Malaysia’s measured, non-confrontational approach in diversifying and deepening trade partnerships is seen as a constructive move to mitigate disruptions and strengthen regional resilience.
In terms of investments, MNRB is maintaining a prudent and selective strategy. The focus remains on high-quality fixed income assets for capital preservation, while equity positioning prioritizes domestic benchmark companies that offer attractive yields, exhibit low volatility, and possess strong fundamentals. This disciplined investment approach aims to ensure the Group’s resilience and agility amidst near-term uncertainties, while remaining committed to delivering long-term value for stakeholders. MNRB is also steadfast in its commitment to achieving Net Zero Carbon status by 2050, integrating environmental, social, and governance (ESG) practices into its operations, anchored by its Sustainability Roadmap and regulatory requirements.
Summary and
MNRB Holdings Berhad’s latest quarterly report paints a picture of a company navigating a complex economic landscape with strategic intent. While the latest quarter saw a decline in profitability, the full financial year demonstrated overall revenue growth and a strengthening balance sheet with increased net assets per share. The Group’s diversified business segments show varied performance, with strong growth in Retakaful offsetting some declines in Reinsurance and Family Takaful.
MNRB’s commitment to strategic growth, digital transformation, and sustainable practices positions it to capitalize on opportunities within Malaysia’s growing takaful sector and to mitigate risks in the global reinsurance market. The prudent investment strategy and ESG commitments further underscore the Group’s long-term vision.
Key points to consider from this report include:
- Overall revenue growth for the full financial year, indicating business expansion.
- Significant increase in net assets per share, reflecting a stronger financial foundation.
- Strategic focus on the growing takaful industry, supported by digital initiatives.
- A disciplined investment approach aimed at capital preservation and attractive yields.
- Commitment to long-term sustainability goals, including Net Zero Carbon by 2050.
As we look ahead, MNRB’s focus on strategic diversification, operational efficiency, and sustainable practices will be crucial in navigating the dynamic market environment. The Group’s ability to adapt to evolving market conditions and leverage growth opportunities in the Shariah-compliant financial ecosystem will be key determinants of its future success.
What are your thoughts on MNRB’s performance this quarter? Do you believe their strategic initiatives, particularly in the takaful and investment segments, will yield significant returns in the coming years? Share your insights in the comments below!
