MNRB HOLDINGS BERHAD Q4 2025 Latest Quarterly Report Analysis

Greetings, fellow investors and market watchers!

Today, we’re diving into the latest financial performance of MNRB Holdings Berhad, a key player in Malaysia’s insurance and takaful landscape. The company has just released its unaudited quarterly report for the financial year ended 31 March 2025, and it presents a mixed picture of resilience and challenges. While the full financial year saw a commendable increase in overall revenue, the final quarter faced some headwinds, leading to a notable dip in profitability. However, the good news for shareholders is the announcement of a generous dividend, reflecting the company’s commitment to returning value.

Let’s unpack the numbers and understand what’s driving MNRB’s performance.

Decoding MNRB’s Latest Financials

MNRB Holdings Berhad’s latest report reveals a robust full-year revenue growth, yet the fourth quarter experienced a significant decline in profitability compared to the same period last year. This highlights the dynamic environment the group is navigating.

Quarterly Performance Snapshot (Q4 FY2025 vs. Q4 FY2024)

For the quarter ended 31 March 2025, MNRB’s insurance/takaful revenue decreased by approximately 13.2% to RM809.0 million. More significantly, the Group’s Profit Before Zakat and Taxation (PBT) saw a sharp decline of about 62.7%, falling to RM101.8 million. Consequently, net profit also dropped by roughly 60.7% to RM93.4 million, with Earnings Per Share (EPS) reflecting a similar trend.

Management attributed this quarterly dip to several factors, including a more refined and periodic claims reserving review practice under MFRS17 accounting standards, fair value losses on equity investments, and a lower share of results from associates. However, the impact was partially softened by favourable net insurance financial results, thanks to foreign exchange gains on claims liabilities.

Full Financial Year Performance (FY2025 vs. FY2024)

Looking at the full financial year, MNRB’s total revenue increased by 3.5% to RM3,634.6 million. This growth was primarily driven by higher insurance/takaful revenue from the reinsurance and general takaful segments, complemented by improved investment income. However, the Group’s PBT for the full year decreased by approximately 10.2% to RM454.3 million, and net profit followed suit with a 9.1% decline to RM394.2 million. This was mainly due to lower insurance service results, a reduced share of associates’ profits, and lower investment results, particularly from fair value gains on equity. Similar to the quarterly performance, positive foreign exchange gains on claims liabilities helped to moderate this decline.

Segmental Highlights (Full Year FY2025)

A deeper look into MNRB’s business segments reveals varied performances:

• Reinsurance Business: This segment saw its total revenue increase by 5.2%, largely due to higher insurance revenue from its VC and domestic treaties portfolios, as well as investment income. However, its PBT declined by 20.6% to RM335.6 million, mainly impacted by net fair value losses on investments, despite improvements in insurance service results.
• Retakaful Business: Revenue for this segment decreased by RM47.5 million, primarily due to timing differences in recognizing revenue from the family takaful portfolio. Nevertheless, the retakaful segment’s PBT surged by an impressive 740.4% to RM17.3 million, largely driven by the reversal of impairment of Qard (a benevolent loan) in its general takaful portfolio.
• General Takaful Business: This segment recorded an 8.9% increase in revenue, boosted by strong growth in motor and fire takaful portfolios. Its PBT also saw a modest increase of 4.0% to RM85.7 million, attributable to higher takaful revenue, although partially offset by increased acquisition costs and management expenses.
• Family Takaful Business: Total revenue for family takaful increased marginally by RM1.0 million, mainly due to better investment income. However, the segment’s PBT decreased by 34.1% to RM12.2 million, primarily due to lower insurance service results from higher claims incurred, despite higher realised gains on investments.

Dividend Announcement

In a positive move for shareholders, MNRB declared a final single-tier dividend of 5.0 sen per ordinary share and a final single-tier special dividend of 5.0 sen per ordinary share for the financial year ended 31 March 2024. This brings the total dividend declared for FY2024 to 10.0 sen, a significant increase from the 4.45 sen paid in the previous year. This dividend was paid on 24 October 2024, during the current financial year under review (FY2025).

Risks and Future Outlook

MNRB Holdings is operating in a dynamic global and domestic economic landscape. While Malaysia’s economy is expected to maintain stable growth driven by domestic demand, global uncertainties, such as potential trade disruptions, continue to pose external headwinds for the economy and the broader (re)insurance and (re)takaful industry.

The Malaysian takaful industry, in particular, is poised for continued growth, supported by rising demand for Shariah-compliant solutions and strong government initiatives like the Financial Sector Blueprint 2022–2026. 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 customer engagement and operational efficiency.

On the reinsurance front, despite external challenges and a softening global reinsurance market, the Group remains optimistic. It plans to pursue growth opportunities through a bottom-line driven portfolio diversification approach.

Strategically, MNRB is committed to maintaining a prudent and selective investment strategy, focusing on high-quality fixed-income assets for capital preservation and domestic benchmark equities with attractive yields and strong fundamentals. The Group also reiterates its commitment to achieving Net Zero Carbon status by 2050, aligning its economic performance with environmental, social, and governance (ESG) practices.

What are your thoughts on MNRB Holdings’ latest performance? Do you believe their strategic initiatives are sufficient to overcome the external headwinds, or do you see more challenges ahead? Share your insights in the comments below!